The SoftBank AI Fund refers to a set of investment initiatives established by SoftBank Group, a Japanese multinational conglomerate, to deploy capital specifically into artificial intelligence companies and related technologies. These funds operate under the broader Vision Fund umbrella, which was launched in 2017 and became one of the largest technology-focused investment vehicles in the world. The AI-focused initiatives have targeted a wide range of sectors, from foundational Artificial intelligence research to applied Generative AI products and semiconductor infrastructure.
SoftBank's AI investment strategy has evolved over time, with a notable pivot in the early 2020s toward Large language model startups and AI infrastructure providers. The group has committed billions of dollars to both private and public companies, often taking significant minority stakes. The funds are managed by SoftBank Investment Advisers, with leadership from founder Masayoshi Son, who has publicly emphasized AI as a transformative force comparable to the internet.
Vision Fund Origins and AI Focus
The first Vision Fund, announced in October 2016 and closed in May 2017, raised approximately $100 billion, with major backing from Saudi Arabia's Public Investment Fund and other sovereign wealth funds. While not exclusively AI-focused, a substantial portion of its early investments targeted AI-driven companies, including NVIDIA (though later sold), Arm Holdings, and various robotics and autonomous driving firms. The fund's thesis centered on the "singularity" and the proliferation of AI across industries, leading to investments in Waymo and Tesla related ventures.
In 2019, SoftBank launched the Vision Fund 2, with a stated focus on AI-enabled companies, though it relied more on internal capital due to limited external commitments. This fund continued to back AI startups, including OpenAI in its early stages, though SoftBank's initial stake was later reduced. By 2023, SoftBank had shifted its public posture to emphasize AI as the core of its investment strategy, with Son declaring a shift from "defense" to "offense" in AI investments.
Major AI Investments and Portfolio
SoftBank's AI fund initiatives have included significant positions in both infrastructure and application layers. Key investments include Arm Holdings, which SoftBank acquired in 2016 and later took public in September 2023, with the company's chip designs being critical for AI processing in mobile and edge devices. The fund also invested in OpenAI through a $500 million round in 2019, and later participated in larger funding rounds for Anthropic and Inflection AI, though some stakes were sold or reduced.
Other notable portfolio companies include Figure AI, a humanoid robotics firm, and Sanctuary AI, which develops general-purpose robots. SoftBank has also backed AI infrastructure providers like Graphcore (a UK-based AI chipmaker) and Groq, which focuses on inference acceleration. In 2024, SoftBank announced plans to invest up to $500 million in OpenAI's employee share sale, and has explored joint ventures for AI data centers in Japan and the United States.
Strategic Partnerships and Infrastructure
SoftBank has formed strategic alliances to bolster its AI ecosystem. A notable partnership with OpenAI was announced in 2024, including a joint venture to market AI services to Japanese corporations, with SoftBank committing to purchase advanced AI chips. The fund has also collaborated with Arm Holdings to promote energy-efficient AI processing, and with NVIDIA on GPU deployment for Japanese AI projects, though the latter relationship has fluctuated.
Infrastructure investments have included backing for Oracle Cloud Infrastructure and Amazon Web Services related AI initiatives, as well as funding for TSMC's advanced chip fabrication through SoftBank's broader holdings. The fund has also invested in Alibaba Cloud and other cloud providers, recognizing the importance of compute capacity for Machine learning workloads.
Performance and Challenges
SoftBank's AI funds have experienced significant volatility. The Vision Fund reported record losses in 2022, largely due to markdowns on tech stocks, but rebounded in 2023 and 2024 as AI valuations surged. The fund's performance has been closely tied to Arm Holdings' stock price, which rose sharply after its IPO. However, some early AI bets, such as investments in we-work (not AI-specific), led to substantial write-offs, prompting a more selective approach.
As of 2025, SoftBank has raised a new AI-focused fund, reportedly targeting $100 billion, with potential backing from Middle Eastern sovereign funds. The fund's strategy includes investing in Generative AI startups, AI infrastructure, and energy solutions for data centers. SoftBank has also explored lending against its Arm Holdings stake to finance these investments, though such moves carry financial risk.
Future Outlook
SoftBank's AI fund initiatives are positioned to play a major role in the global AI investment landscape. The group has expressed interest in backing foundational research, including work at Stanford AI Lab and MIT CSAIL, as well as commercial applications in healthcare, finance, and robotics. Masayoshi Son has repeatedly stated that AI will surpass human intelligence by 2035, driving the fund's long-term thesis. However, the success of these initiatives depends on market conditions, regulatory developments, and the ability to generate returns from a highly competitive sector.