SoftBank to Pour $9 Billion into AI Projects, Joining Tech Giants in AI Arms Rac

Published Date: 27/05/2024      

With AI models like ChatGPT and GPT-3 leading the way, SoftBank is planning to invest nearly $9 billion in artificial intelligence, intensifying the competition with tech giants like Microsoft, Amazon, and Google

The artificial intelligence (AI) landscape is heating up, with major tech companies and venture capital firms investing billions of dollars in AI models, data centers, and startups. SoftBank, Japan's tech giant, is the latest to join the fray, planning to commit nearly $9 billion to AI projects.

SoftBank, Japan's tech giant, is reportedly planning to invest nearly $9 billion in artificial intelligence (AI) projects, joining the ranks of tech giants like Microsoft, Amazon, and Google in the AI arms race. This significant investment is aimed at stepping up SoftBank's investments in AI companies, as the company looks to tap into the growing worldwide demand for AI technologies.

SoftBank's chief financial officer, Yoshimitsu Goto, revealed that the company's outlay for investments and commitments has more than doubled to $8.9 billion in the last 12 months. "We will, in principle, be keeping the same kind of trend in terms of the pace of investment activities," Goto said. "From now on, we want to step up investments in AI companies."

The move is seen as a strategic response to the growing competition in the AI space. Last year, SoftBank CEO Masayoshi Son projected that artificial general intelligence (AGI) — a computer system that can match or exceed human thought and reasoning — will become 10 times more powerful than all of humanity by the end of this decade. "Take advantage of it or be left behind," Son warned.

SoftBank's investment news comes on the heels of reports that Microsoft and Amazon have already allocated $40-plus billion combined for AI-related and data center projects around the world this year. Microsoft plans to invest more than $16 billion in various countries, including France, Germany, Japan, Malaysia, Spain, and Indonesia, while Amazon has set aside investments of $15 billion in Japan, $9 billion in Singapore, $5 billion in Mexico, and $1.3 billion in France.

The increasing investment in AI infrastructure overseas is driven by the need to tap into the growing worldwide demand for AI technologies, as well as the necessity of having data centers built in regions where the shift to cloud computing is taking place. This ensures faster processing times, while data remains secure and private.

SoftBank's commitment to AI investment marks a significant milestone in the development of artificial intelligence, as tech giants and venture capital firms continue to invest heavily in AI models, data centers, and startups.