SoftBank Seeks $100 Billion From Gulf Investors to Expand AI Investments
Japan’s SoftBank Group is exploring plans to raise up to $100 billion from Gulf investors to expand its artificial intelligence investments. Founder and CEO Masayoshi Son aims to secure fresh capital as the company increases its exposure to the rapidly growing AI industry.
According to reports, Son recently met senior figures in the United Arab Emirates to explore potential funding opportunities. However, the negotiations remain preliminary, and neither side has confirmed any investment commitments.
The initiative follows SoftBank’s $65 billion investment in OpenAI, the developer of ChatGPT. Meanwhile, concerns surrounding OpenAI’s delayed initial public offering and SoftBank’s growing AI exposure have increased investor scrutiny.
SoftBank Eyes Gulf Funding for AI-Driven Acquisitions
Under the proposed strategy, SoftBank could establish a major investment fund to acquire companies and improve their operations through artificial intelligence and advanced technologies.
Additionally, Roze, SoftBank’s robotics and physical AI business, could play an important role in transforming acquired businesses. Son also hopes to pursue a public listing for Roze at a substantial valuation.
Gulf countries have increasingly invested in artificial intelligence to diversify their economies beyond oil and gas. Consequently, the region has emerged as an attractive funding destination for global technology companies.
Abu Dhabi, in particular, has expanded its AI investments through organizations such as MGX and G42. However, neither organization has publicly confirmed involvement in the proposed fundraising.
SoftBank has previously secured substantial financial backing from Gulf sovereign wealth funds. In 2017, Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala supported the company’s first $100 billion Vision Fund.
Since its launch, the original Vision Fund has generated approximately $29 billion in cumulative investment gains through June 2026. Meanwhile, Vision Fund 2, which includes SoftBank’s OpenAI investment, has recorded gains of $20.5 billion.
Son’s investment history includes major successes and costly setbacks. For example, SoftBank earned substantial returns from Alibaba, while its investment in WeWork suffered significant losses before the company’s 2023 bankruptcy.
Nevertheless, SoftBank continues to position itself as a leading global investor in artificial intelligence.
OpenAI IPO Delay Raises Financial Concerns
SoftBank’s latest fundraising efforts come amid growing uncertainty surrounding AI company valuations and public market listings.
OpenAI’s decision to postpone its anticipated IPO has raised questions about SoftBank’s future investment capacity. Furthermore, concerns about AI development risks have contributed to broader uncertainty across the technology sector.
Meanwhile, OpenAI competitor Anthropic, the developer of Claude, is preparing for a potentially significant stock market debut.
Despite market concerns, SoftBank remains committed to expanding its AI investments. However, the growing risks associated with advanced AI technologies have intensified discussions about responsible development and commercial sustainability.
SoftBank’s financial performance has reflected these changing market expectations. Although its shares have gained approximately 25% this year, they have declined more than 30% from their June peak.
Additionally, the stock dropped 5% on Friday following reports that OpenAI’s annualized revenue was approximately $20 billion below earlier company indications.
The developments have increased concerns about SoftBank’s dependence on AI-related investments, particularly its substantial exposure to OpenAI.
SoftBank Balances AI Ambitions With Financial Risks
SoftBank has financed its expansion through investment funds, borrowing, and existing corporate resources. Moreover, the company has used its stake in semiconductor designer Arm to support financing arrangements.
Last month, SoftBank completed a record junk bond offering, raising more than $11 billion. The offering provided investors with yields reaching 9.75%, highlighting the substantial financing costs associated with its strategy.
Nevertheless, SoftBank reported a net asset value of ¥72.3 trillion at the end of June. Its loan-to-value ratio stood at 13%, comfortably below the company’s normal operating ceiling of 25%.
The company maintains that short-term valuation changes will not disrupt its investment plans. However, a sustained decline in OpenAI’s valuation could create financial challenges.
Because SoftBank holds substantial direct and indirect AI investments, a major correction could affect several portfolio companies simultaneously.
Meanwhile, Gulf investors could provide additional financial flexibility, allowing SoftBank to pursue acquisitions without relying entirely on borrowing.
Ultimately, the proposed $100 billion fundraising effort highlights SoftBank’s determination to accelerate its AI expansion. However, its success will depend on investor confidence, market valuations, and the long-term commercial performance of artificial intelligence.
