Layoffs of 20% of SoftBank Vision Fund staff to focus on aggressive AI investments
SoftBank Shifts Focus to AI and Infrastructure Strategy
In a significant move, SoftBank's Vision Fund is reallocating resources towards large-scale artificial intelligence (AI) investments in the United States, as announced by founder Masayoshi Son. This decision is part of a broader, capital-intensive strategy that places SoftBank's crown jewel, chip designer Arm, at its core.
The remaining staff will concentrate on Son's ambitious AI initiatives, such as the proposed $500 billion Stargate project. However, there have been delays in both the U.S. Stargate project and a similar joint venture with OpenAI in Japan, which carry execution risks.
Despite these risks, SoftBank appears to be well-equipped financially. As of its most recent earnings call in August, the company boasts a "very safe level" of cash amounting to 4 trillion yen ($27 billion) according to CFO Yoshimitsu Goto.
SoftBank's commitment to AI is evident in its recent investments. In collaboration with OpenAI and Arm, the firm has invested in various companies over the past 12 months, totalling up to $25 billion in AI-related ventures. Notable acquisitions include chip firms Graphcore and Ampere Computing, as well as stakes in Intel and Nvidia.
However, the Vision Fund is not immune to cost-cutting measures. A recent round of layoffs, affecting nearly 20% of its global team, was announced following the Vision Fund's strongest quarterly performance since June 2021.
Despite these changes, SoftBank continues to invest in new ventures. A recent $912 million investment was made, though the specific company or purpose was not disclosed. As of now, the Vision Fund employs over 300 people globally.
It's important to note that there is no mention of a refinancing or growth strategy for Eruditus, a planned exit from a company or project, a JPMorgan corporate banking hiring strategy in the Asian Pacific region, a PE firm named Helios, a smartphone maker named Nothing, or a corporate banking hiring strategy in the provided sources.
