SoftBank's AI Vision and PayPay's U.S. IPO Plans Highlight Strategic Shift

Masayoshi Son, founder of SoftBank, is betting the company’s future on artificial intelligence. He believes AI will be 10,000 times smarter than humans within a decade, a vision he sees as his life's purpose. This belief is driving a comprehensive AI strategy, which includes major investments across the technology stack, from semiconductors to robotics. SoftBank acquired chip designer Arm for about $32 billion in 2016, a company now valued at over $145 billion. It also announced plans to acquire Ampere Computing for $6.5 billion in March and has committed a substantial amount to OpenAI.

Son's interest in AI applications dates back to 2010 when he spoke about "brain computers" and later launched a humanoid robot in 2014. While some of his past ventures, like the Vision Fund, faced setbacks, he remains committed to being a major player in AI. The company's recent first-quarter results showed a surge in its stock of more than 10%, driven by statutory earnings per share that were well above expectations.

In a move to generate capital for its AI ambitions, SoftBank is preparing for a U.S. initial public offering (IPO) of its Japanese payments app, PayPay. The listing could raise over $2 billion and is expected to happen in the final quarter of this year, with major banks like Goldman Sachs and JPMorgan leading the effort. This follows the successful 2023 IPO of Arm, which listed at a valuation of $54.5 billion and has since seen its market capitalization more than double. This strategic plan to monetize mature assets through U.S. markets is aimed at funding SoftBank’s future AI ventures, even as the company faces risks from fast-moving technological developments and new market competitors.