Masayoshi Son, the visionary leader behind SoftBank Group Corp., has set his sights on an ambitious goal: to invest a staggering $100 billion into the development of artificial intelligence (AI) chips. This massive financial commitment, aimed at fostering innovation in the tech sector and bolstering the U.S. economy, comes in the wake of SoftBank Group Corp.'s recent announcement that it will channel this investment over the next four years. Such endeavors have raised eyebrows and spurred discussions among industry observers about the potential implications for both the technology landscape and employment rates in the United States.

Informants within SoftBank Group Corp. reveal that Son has also pledged to create 100,000 job opportunities within the AI and associated infrastructure sectors. This declaration is indicative of a broader trend among tech leaders to demonstrate their commitment to American economic growth, especially as governments look for ways to recover from recent economic challenges.

Naturally, the announcement has sparked questions regarding the funding sources for Son’s ambitious plans. After all, SoftBank Group Corp. has a history of leveraging external investors’ capital for its flagship Vision Fund, which has previously made headlines for investing billions into startups like WeWork, Uber, and DoorDash. However, in the current climate, the company appears to face financial constraints, boasting a cash and cash equivalents balance of approximately 3.8 trillion yen (about $25 billion) as of September. Nonetheless, SoftBank Group Corp.'s fortunes are showing signs of recovery following the initial public offering (IPO) of Arm, a company in which it still holds a significant share, approximately 90%, with Arm’s market valuation hovering around $160 billion.

Reports suggest that the funding for this new initiative could arise from different arms of SoftBank Group Corp. itself, which may include resources from the Vision Fund, capital plans, or from its major stake in semiconductor manufacturer Arm Holdings. It is also possible that some of this funding is not entirely new but may involve previously announced investments, such as SoftBank Group Corp.'s recent $1.5 billion investment in OpenAI, the company behind the popular chatbot ChatGPT.

Son is not alone in attempting to curry favor with the new government. Prominent tech executives, such as Sam Altman, CEO of OpenAI, have indicated their support by committing $1 million to the transition fund. Other tech giants, including Meta Platforms, Amazon, and AI startups like Perplexity, have followed suit by making equivalent contributions.

Reflecting back to 2016, Son made a similar pledge, where SoftBank Group Corp. committed to invest $50 billion in the U.S., with a focus on generating 500 jobs. At that time, SoftBank Group Corp. was among a select few firms making noteworthy commitments to the American economy. Indeed, while the company actively deployed its Vision Fund to support U.S.-based businesses, the subsequent years witnessed it grappling with significant setbacks, primarily due to failed investments, particularly a costly investment in WeWork that ultimately led to the startup's bankruptcy.

In an effort to stimulate the U.S. economy, the current administration has committed to implementing measures such as lowering corporate tax rates, encouraging foreign companies to invest domestically through tariffs, and eliminating certain regulations that Republicans argue hinder economic growth. Additionally, plans are in place to streamline the approval process for individuals willing to invest $1 billion or more in the U.S. Although specific details on the expedited approval process were sparse, this promise addresses a significant concern for technology and energy firms, where regulatory delays are viewed as obstacles to the necessary upgrade of U.S. energy infrastructure for AI advancement.

It remains unclear how much of the promised investment from SoftBank Group Corp. is new capital, although Son has long been advocating for a considerable investment, particularly in AI chip development. In fact, discussions surrounding AI have been circulating around Son for well over a decade, with SoftBank Group Corp. actively positioning itself as a forward-thinking entity in the tech space. Since 2012, the company has made substantial investments in AI companies worldwide.

To further actualize his vision, Son established the SoftBank Group Corp. Vision Fund in 2017, designed to focus on funding innovative firms in the tech arena and various startups. The Vision Fund is known for its two investment rounds, and in its first round, SoftBank Group Corp. notably invested $32 billion to acquire ARM, a globally recognized semiconductor company. This acquisition is widely regarded as a pioneering move by SoftBank Group Corp. into the realm of AI.

Earlier this year, in May, SoftBank Group Corp. announced plans to invest up to $9 billion in AI projects, marking what it termed the “most thorough” transformation the company has undertaken to date. SoftBank Group Corp. is currently in a preparatory phase, gearing up for even larger transactions in the future.

Son has long emphasized the importance of adhering to the growth potential presented by AI. He believes that transforming the company to align with emerging technological trends is critical to future success. Since Son announced SoftBank Group Corp.'s readiness to embark on a 'counteroffensive,' the company's investment and expenditure commitments have doubled compared to previous years, surpassing $8.9 billion. Moreover, SoftBank Group Corp. has indicated a willingness to maintain or even exceed this level of investment should sizable opportunities arise.

Deriving from this visionary strategy, Son firmly believes that AI will fuel the next wave of growth, and he is intent on restructuring both SoftBank Group Corp. and the Vision Fund to ensure the company remains a pivotal player in the upcoming development phase driven by AI technologies. As the tech landscape continues to evolve, the anticipation surrounding SoftBank Group Corp.’s future endeavors remains palpable.