SoftBank to trim Vision Fund team by 20% to focus on Son's AI projects

SoftBank will cut nearly 20 per cent of Vision Fund staff worldwide as it shifts focus to AI projects like the $500 billion Stargate plan, investing heavily in chips, data centres and OpenAI

SoftBank Group plans to lay off nearly 20 per cent of its Vision Fund team worldwide as it shifts resources to founder Masayoshi Son’s large-scale artificial intelligence (AI) projects in the US, news agency Reuters reported.

 

The Vision Fund currently employs more than 300 people globally. Unlike previous layoffs, which were triggered by major losses, this round comes after the fund posted its strongest quarterly performance since June 2021, buoyed by gains in public holdings such as Nvidia and South Korean e-commerce company Coupang.

 

Focus on AI and the Stargate project

 

Remaining Vision Fund staff will dedicate more resources to Son’s AI initiatives, including the proposed $500 billion Stargate project, which aims to build a vast network of US data centres in partnership with OpenAI.

 

A Vision Fund spokesperson told Reuters, “We continually adjust the organisation to best execute our long-term strategy-making bold, high-conviction investments in AI and breakthrough technologies, and creating long-term value for our stakeholders.”

 

The restructuring signals a return to Son’s high-risk, high-reward approach, moving away from the sprawling venture capital model that defined Vision Fund’s previous era. The fund had previously de-risked and sold assets after heavy losses on bets like WeWork.   

 

Massive bets on AI and chips

 

SoftBank is aggressively investing in foundation models and AI infrastructure. Over the past year, Son has invested $9.7 billion in OpenAI through Vision Fund 2, which manages about $65.8 billion in total.

 

SoftBank is also building a chip and infrastructure ecosystem, centred on its crown jewel, Arm. The company has acquired Graphcore and Ampere Computing and taken stakes in Intel and Nvidia. These moves aim to support future AI adoption through an integrated network of chips, data centres, and AI models.

 

However, this capital-intensive strategy carries risks. Both the US Stargate project and a similar OpenAI joint venture in Japan have faced delays, Reuters reported. SoftBank CFO Yoshimitsu Goto said the company maintains a “very safe level” of cash, totalling 4 trillion yen ($27 billion).

 

SoftBank reduces stake in Ola Electric

 

SoftBank has trimmed its stake in Ola Electric to 15.68 per cent after selling 2.15 per cent of the company. Its investment arm, SVF II Ostrich (DE) LLC, sold 94.94 million shares in a series of transactions between July 15 and September 2, according to a BSE filing.

 

SoftBank remains the second-largest shareholder in Ola Electric, holding 691.6 million shares after founder Bhavish Aggarwal. 

 

  Additionally, the Japanese giant has also invested $2 billion in Intel, buying about 87 million shares at $23 each, giving it nearly a 2 per cent stake and making it Intel’s sixth-largest shareholder, The Wall Street Journal reported in August.

 

Intel has struggled with losses and project delays, losing 60 per cent of its value last year as it lagged in the AI market dominated by Nvidia. SoftBank’s investment is expected to help Intel build a flagship manufacturing hub in Ohio.

 

SoftBank reports strong Q1 profit

 

In its April-June quarter, SoftBank posted a profit of 421.8 billion yen ($2.9 billion), rebounding from a 174 billion yen loss a year earlier, Associated Press reported. Quarterly sales rose 7 per cent to 1.8 trillion yen ($12 billion), boosted by gains from AI-focused investments such as Nvidia and OpenAI.

 

Masayoshi Son has reiterated his confidence in AI as the driver of SoftBank’s future growth.