Tech titan SoftBank dreams of an AI-inspired comeback, but risks reliving regrets

Late-night heart-to-hearts… with ChatGPT. After 3 a.m. convos with OpenAI’s bot, SoftBank CEO Masayoshi Son had a revelation: AI could lead SoftBank out of its rut. Its stock popped last week after an AI-centric investor presentation. The Japanese tech investment firm is known for its Vision Fund, which has held major stakes in companies like WeWork, Uber, and Alibaba. Here’s a storytime, with quotes from SoftBank’s quirky earnings decks:

• “Valley of Coronavirus”: SoftBank’s iconic cartoon of unicorns falling into a ditch illustrated its struggle in early 2020 as the value of its Vision Fund plunged with billions in losses.

• “Producer of Golden Eggs”: In 2021 it posted a $46B profit (a record for Japan) as shares in holdings like DoorDash and Coupang surged during IPO-palooza.

• “Many Regrets”: Slide 11’s poetic sentiment reflected SoftBank’s mood after a record $23B quarterly loss (its investments plunged as rates soared). It sold entire stakes in holdings including Nvidia (which recently soared to a $1T valuation… womp).

• “What is Mankind?”: After posing this q on slide 4 of last week’s presentation, SoftBank concluded that its future is artificial intelligence.

AI of the tiger... Son wants SoftBank “to lead the AI revolution,” presumably through investments. He also said ChatGPT helped him brainstorm 600+ ideas, some of which the bot apparently praised as “feasible and wonderful.” He’s not the only one who’s caught the AI bug. A few stats:

• 168: # of times Big Tech leaders mentioned “AI” in recent earnings calls.

• +30%: The techy Nasdaq’s gains this year, significantly outperforming the S&P 500. AI-associated names like Nvidia, Symbiotic, and C3.ai have soared.

• 1 in 4 new unicorns this year are AI startups.