tl;dr
SoftBank is laying off 20% of Vision Fund staff globally to focus on AI, marking a strategic pivot from past speculative investments. Founder Masayoshi Son is betting $500 billion on AI through projects like a U.S. data center network with OpenAI, aiming to control the AI supply chain. The Vision Fu...
**SoftBank’s AI Revolution: Layoffs, Bold Bets, and the $500 Billion Gamble**
SoftBank Group is making a seismic shift. After years of volatile bets and painful losses, the Japanese tech giant is shedding 20% of its Vision Fund staff worldwide—over 300 employees—to double down on artificial intelligence. This third round of layoffs since 2022 isn’t a sign of crisis but a strategic pivot. Founder Masayoshi Son is betting big on AI, pouring resources into projects like a $500 billion U.S. data center network with OpenAI, signaling a dramatic departure from the fund’s earlier strategy of spreading investments across hundreds of startups.
The Vision Fund, once a symbol of speculative ambition, has seen a rebound. Its strongest quarter in over two years was fueled by gains in stocks like Nvidia and Coupang, proving that Son’s revised approach is already paying off. Yet the job cuts—described as a way to “sharpen AI focus”—highlight a stark contrast to the fund’s early days. Back then, it poured billions into unproven startups, only to face ruin from high-profile failures like WeWork. Those missteps forced SoftBank to scale back, sell assets, and rebuild credibility. Now, the company is trading breadth for depth, channeling capital into a handful of high-stakes AI initiatives.
At the heart of this shift is Son’s belief that AI will redefine industries. His $500 billion **Stargate project** aims to build a sprawling network of U.S. data centers, powered by OpenAI’s cutting-edge models. This isn’t just about hardware—it’s about creating an ecosystem. SoftBank has already invested $9.7 billion in OpenAI through Vision Fund 2, while also backing chipmakers like Graphcore, Ampere Computing, and even owning Arm, a cornerstone of modern computing. The goal? To control every link in the AI supply chain, from silicon to software.
But the path isn’t without hurdles. The Stargate project has faced delays, and a similar initiative in Japan with OpenAI hit snags. Critics argue that building such a massive infrastructure requires not just money, but land, energy, and tech that’s still evolving. Yet SoftBank’s CFO, Yoshimitsu Goto, insists the company is prepared. With 4 trillion yen ($27 billion) in cash reserves, SoftBank claims it can weather setbacks while continuing to invest.
This move underscores a broader trend: the race to dominate AI is no longer about incremental progress but about bold, concentrated bets. For SoftBank, the stakes are high. A successful AI pivot could restore its status as a global investment titan. A failure, however, might relegate it to the sidelines of the tech revolution.
As the world watches, one question lingers: Will Son’s gamble on AI reshape the future—or become the next cautionary tale? The answer could define not just SoftBank’s destiny, but the trajectory of the AI era itself.