SoftBank courts Gulf investors for $100 billion AI turnaround fund

Masayoshi Son is seeking up to $100 billion from Gulf investors for a new SoftBank fund that would acquire established companies and overhaul their operations with AI and robotics, according to the Financial Times. The strategy would differ from SoftBank’s earlier funds by buying businesses that have not yet adopted advanced technology and attempting to raise their value through operational improvements.

Senior figures in the United Arab Emirates have reportedly been approached in recent weeks. Roze, SoftBank’s robotics and physical AI division, is expected to play a major role, though details remain unclear and neither the fund nor its financing is guaranteed. Son also plans to eventually take Roze public at a substantial valuation.

The push adds to SoftBank’s aggressive AI positioning after roughly $65 billion committed to OpenAI, financed through internal resources, outside capital, and borrowing partly backed by Arm holdings. Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala helped finance the original $100 billion Vision Fund in 2017, while Vision Fund 1 has recorded approximately $29 billion in gains and Vision Fund 2 has generated $20.5 billion as of June.

SoftBank recently raised more than $11 billion in a junk bond sale with yields reaching 9.75%. As of June, its net asset value stood at ¥72.3 trillion ($456.57 billion), and its loan-to-value ratio was 13%, below its normal operating limit of 25%, though falling valuations in Arm or OpenAI could raise pressure on the balance sheet.