SoftBank has invested $500 million in OpenAI as part of the AI company’s record-breaking $6.6 billion funding round, marking a significant milestone in billionaire Masayoshi Son’s ambitious artificial intelligence strategy. The investment represents far more than a simple financial stake in Silicon Valley’s most prominent AI startup—it’s a crucial piece in Son’s self-described life mission to advance artificial intelligence and achieve artificial general intelligence (AGI).
Son’s AI investment strategy is structured across three distinct layers: the application layer featuring consumer-facing tools like ChatGPT, the infrastructure layer focused on data gathering and analysis tools, and the hardware layer encompassing chips, data centers, and robotics. With OpenAI, SoftBank finally secures a major position in foundation model AI development, filling a gap between the application and infrastructure layers.
The investment comes at a pivotal moment for OpenAI, following months of high-profile executive departures that raised questions about the company’s stability. However, for Son, who has been evangelizing AI advancement since before ChatGPT’s November 2022 launch, this deal aligns perfectly with his broader vision. At SoftBank’s annual meeting in June, Son told shareholders that advancing AI “is what I was born to do.”
SoftBank’s AI portfolio already includes investments through its Vision Funds, which have backed hundreds of companies with mixed results—Vision Fund 1 has gained $21.7 billion while Vision Fund 2 has lost $22.9 billion as of June. The company also successfully relisted chip designer Arm in September 2023, which has since reached a market capitalization exceeding $142 billion by positioning itself as a key AI hardware player.
Son’s ambitions extend even further. Reports suggest he’s been courting Middle Eastern investors to raise up to $100 billion for a secretive chip venture codenamed “Izanagi”—named after the Japanese deity of creation, with initials deliberately chosen to reference AGI. This venture could compete with Nvidia in chip design or support Arm’s plans to launch its own AI-specialized chip business in 2025. SoftBank acquired Nvidia rival Graphcore in July, with the startup’s CEO describing it as “part of the delivery behind a very grand vision.”
According to author Lionel Barber, Son stated in late 2023 that he wants to be remembered as “one of the foundation stones of AGI,” declaring that “AGI is the only thing I care about.” The OpenAI investment positions SoftBank to control critical pieces across the entire AI stack needed to realize that vision.
Key Quotes
this is what I was born to do
Masayoshi Son told SoftBank shareholders at the company’s annual meeting in June, emphasizing his personal commitment to advancing artificial intelligence as his life’s mission and primary focus.
I may not be the full story of AGI, but one of the foundation stones of AGI. AGI is the only thing I care about.
Son shared this statement with author Lionel Barber during a two-hour conversation in late 2023 at SoftBank’s Tokyo headquarters, revealing the singular focus driving his massive AI investments and strategic vision.
part of the delivery behind a very grand vision
Graphcore CEO Nigel Toon described SoftBank’s acquisition of the Nvidia rival in July, suggesting the chip company would play a crucial role in Son’s broader AI ambitions and hardware strategy.
Our Take
SoftBank’s OpenAI investment represents a masterclass in strategic positioning for the AI era. Unlike venture capitalists making scattered bets, Son is methodically assembling an end-to-end AI empire—from the chips that power models to the applications consumers use daily. This vertical integration strategy could prove decisive as AI development becomes increasingly capital-intensive and hardware-dependent. The timing is particularly shrewd: investing in OpenAI during a period of internal turbulence may have secured favorable terms while the company remains the clear leader in foundation models. However, Son’s track record is mixed—his Vision Funds have experienced significant losses, and he famously sold SoftBank’s Nvidia stake before the AI boom. The success of this grand AGI vision will depend on whether these disparate investments can truly complement each other as intended, or if they remain a collection of expensive but disconnected bets on AI’s future.
Why This Matters
This investment signals a fundamental shift in how major technology conglomerates are positioning themselves for the AI era. SoftBank’s strategic approach—building a vertically integrated AI ecosystem spanning applications, infrastructure, and hardware—could become a blueprint for other investors seeking comprehensive AI exposure. The deal validates OpenAI’s continued dominance despite recent leadership turbulence and demonstrates that major institutional investors remain confident in the company’s trajectory toward AGI.
Son’s ambitious vision has broader implications for AI development globally. His pursuit of a $100 billion chip venture and strategic positioning across the entire AI value chain could accelerate hardware innovation and reduce dependence on current market leaders like Nvidia. For businesses and developers, this could mean more competitive pricing, diverse chip options, and faster advancement in AI capabilities. The investment also highlights how the race toward AGI is increasingly becoming a capital-intensive competition requiring massive financial resources and coordinated strategies across multiple technology layers. As one of tech’s most aggressive visionaries backs OpenAI while simultaneously building complementary infrastructure, the pace of AI advancement may accelerate significantly in coming years.
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Source: https://www.businessinsider.com/openai-softbank-investment-ai-vision-2024-10