SoftBank Group Corp. is taking a group of Indian startup founders on an AI tour to Silicon Valley, as the Japanese investor intensifies its efforts to equip its portfolio companies with advanced technology. As part of its strategy to help portfolio companies embrace artificial intelligence, SoftBank has been arranging meetings between the founders it supports and leading players in the field. Sumer Juneja, Managing Partner overseeing SoftBank’s Vision Fund investments in Europe, the Middle East, Africa, and India, revealed the company’s plans during an interview in Mumbai. While he did not disclose specific names, Juneja mentioned that SoftBank expects to include many of the 20 founders from its Indian companies on the tour. Notable businesses in SoftBank’s Indian portfolio include Oyo Hotels, ride-hailing provider Ola, and delivery firm Swiggy.
Under the leadership of Masayoshi Son, SoftBank reignited its startup investments during the June quarter after a temporary pause caused by dwindling investor interest in money-losing startups. With a staggering cash pile of over $40 billion, SoftBank is also preparing for the upcoming public offering of chip designer Arm Holdings Ltd., which will further add to its financial reserves.
Juneja emphasized the importance of not missing the AI wave, stating, What we don’t want to do is to invest in a company that misses the AI wave and then three years later turn irrelevant. SoftBank is committed to investing in companies that have a sophisticated tech team and operate in industries where AI can enhance business models and improve efficiency. Investors worldwide are rushing to back AI companies in various sectors, such as software-as-a-service, as they recognize the potential of AI-powered products like ChatGPT. Juneja believes that without the speedy adoption of AI use cases, companies risk becoming redundant, but the challenge lies in determining how to best utilize AI.
Juneja highlighted the delicate timing involved in entering the AI market, stating, If you are too late to the AI party, you are toast, and if you are too early, it won’t impact your revenue. We are helping to ensure the transition is right. Since its inception in 2017, SoftBank’s Vision Fund, spearheaded by Son, has invested over $140 billion in startups, primarily focusing on cutting-edge technologies like artificial intelligence. However, some of these investments, including office-sharing startup WeWork Inc., have suffered significant declines in value.
In an ever-evolving tech landscape, SoftBank’s push to introduce Indian startup founders to Silicon Valley’s AI ecosystem underscores its commitment to staying at the forefront of innovation and equipping its portfolio companies with the necessary tools to succeed. By facilitating meetings between founders and industry leaders, SoftBank aims to create a conducive environment for knowledge sharing and collaboration. With the global race to harness the transformative power of AI well underway, SoftBank’s efforts will help its portfolio companies navigate this critical technological shift.
