SoftBank’s Vision Fund shrinks as Son embraces AI, semiconductors: report

Photo credit: SoftBank

As founder Masayoshi Son shifts his focus toward semiconductors and AI, SoftBank Group’s Vision Fund has sold off or written down its publicly listed holdings over the past few years, Bloomberg reported.

Its US-listed portfolio, for one, has shrunk by nearly US$29 billion since late 2021. The cause is a mix between SoftBank selling off stakes and a decline in market value for firms like Coupang, DoorDash, and Grab.

Son’s strategy shift comes after the rise of chip company Arm, which was valued at around US$106 billion following its IPO last year. SoftBank’s 90% stake in Arm is now worth more than SoftBank in its entirety.

Now, the staff size at the Vision Fund has decreased, with the remaining staff mainly tasked with finding the best moments to sell assets and/or reverse any losses. While there have been talks in the past about more Vision Funds to follow the first two, it’s unclear whether this plan will materialize.

For now, Son is said to be considering a US$100 billion investment in a chip venture, which would rival Nvidia and provide semiconductors for AI development.

After being in the red in the first half of 2023, the SoftBank Vision Fund did post a gain of US$3.6 billion during the December quarter of 2023. Both Vision Fund 1 and 2 sold investments worth US$19.5 billion in the period, including full exits from 13 portfolio companies.

In another sign of its AI shift, SoftBank has also sold most of its stake in Chinese ecommerce giant Alibaba.

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