SoftBank’s billionaire founder, Masayoshi Son, is making a significant shift in investment strategy, pivoting towards artificial intelligence and semiconductor ventures. The flagship Vision Fund of SoftBank Group Corp. has been quietly divesting billions of dollars from its publicly-listed holdings in recent years, emphasizing strategic investments in AI and chips over traditional venture capital deals.
Since the end of 2021, the Vision Fund has reduced its US-listed portfolio by almost $29 billion by selling stakes in companies like Coupang Inc., DoorDash Inc., and Grab Holdings Ltd. Additionally, the fund sold its stake in chip designer Arm Holdings Plc back to SoftBank. This move signifies Son’s transition towards AI and semiconductor investments, with preparations underway for potential ventures in these sectors.
The Vision Fund’s reduced staff now focus on managing existing investments, while the equity capital market team plays a crucial role in asset sales with minimal market impact. Son’s recent investments are channeled through the holding company rather than the Vision Fund, marking a departure from his previous strategy of launching new Vision Funds every few years.
Inspired by the success of Arm, which has seen a substantial increase in market value since its debut, Son is reportedly considering backing a $100 billion chip venture to rival Nvidia Corp. and supply semiconductors for AI development. However, the details of this potential project remain fluid.
The Vision Fund’s asset sale disclosures, made through 13F filings to the US Securities and Exchange Commission, demonstrate a shift in focus from traditional investments to AI and chips. SoftBank’s overall net asset value has been impacted by these changes, with the Vision Fund’s contribution decreasing at the end of December compared to the previous year.
In conclusion, Masayoshi Son’s strategic pivot towards AI and chips reflects the evolving investment landscape, with a focus on emerging technologies that hold significant potential for future growth and innovation.
