Son of SoftBank intends to create ‘super’ AI in new investments

(Bloomberg) — SoftBank Group Corp. founder Masayoshi Son is back, this time with plans to usher in an era of artificial superintelligence.

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Son outlined ambitions to help create an AI thousands of times smarter than any human being, making his biggest pronouncements since the Japanese conglomerate began taking steps to shore up its finances after a series of ill-timed bets on startups.

Son, appearing more energized and more reflective than he has in years, spoke Friday about a future in which Arm Holdings Plc’s chips support a thriving ecosystem of powerful robots and data centers that can collectively cure cancer, clean homes and play with children.

Son, at times visibly overcome with emotion, spoke about how he wanted to change the world before leaving it for good. The 66-year-old invoked his late friend Steve Jobs, saying their frequent conversations often left him in tears as he realized his legacy would pale in comparison to that of the Apple Inc. co-founder.

But after agonizing over his next move last year, during which Son’s father passed away, the billionaire said he woke up with an epiphany on Friday morning. “I have my answer,” Son told shareholders gathered at an annual meeting. “This is what I was born for,” he said, without going into detail about what his next plans would be. “We did a lot of things, but this was all a warm-up for my dream of achieving ASI.”

SoftBank shares fell 3.1%, the biggest drop in three months.

SoftBank is working on a plan to deploy about $100 billion in AI-related chips in a project called Izanagi, Bloomberg reported in February. When a shareholder asked about Izanagi, Son said he is committed to achieving results and will work hard to achieve his goals, without elaborating.

Son’s exposure and his goals have become grandiose in proportion to SoftBank’s share price, which has tracked Arm’s AI-driven rally in 2024, and its pile of cash. He ignored questions about share buybacks, dividends and stock splits, saying such issues are of little importance compared to the realization of a world powered by superintelligence and the evolution of humanity.

“Share buybacks and dividend payments are minor things,” Son said, adding that the evolution and proliferation of technology will be what drives shareholder value. “You may be worried about whether SoftBank shares will rise or not. Let’s all forget these things. Does it really matter? Masayoshi Son has a dream to pursue – please root for me.”

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Son’s stance on share repurchases comes after Elliott Investment Management’s recent purchase of more than $2 billion in SoftBank shares and its demand for a $15 billion share buyback. This is the second time Elliott has targeted SoftBank.

“You never know what’s going to happen and I’m not promising anything. I can do a share buyback, I can decide to take the company private, or I can continue business as is,” Son said. “Whatever the form, I’m going after the ASI.”

Top executives hinted that the company is preparing to attack investments, potentially ending several quarters of a hiatus in activity. The company’s loan-to-value ratio fell to 8.4% at the end of March, near an all-time low and well below the company’s target of 25%. This is one of Son’s favorite metrics for determining whether the company is properly balancing risk and opportunity.

SoftBank’s net asset value reached 34 trillion yen ($214 billion) on Thursday, boosted by Arm’s recovery. SoftBank’s own shares are up nearly 60% this year and are poised to set a new record.

Chief Financial Officer Yoshimitsu Goto told investors during an earnings briefing last month that SoftBank is now in a position where it needs to take on more risk, especially as AI development accelerates. “Not taking risks constitutes the biggest risk for us,” said Goto, who previously served as the voice of reason for Risk-Taking Son. “We have our sights set on a variety of challenges.”

–With assistance from Hiroshi Miyazaki.

(Updates with share reaction)

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