More focused on AI and semiconductors, even intending to compete with NVIDIA! SoftBank sells part of its "Vision Fund" assets
SoftBank Group founder Masayoshi Son used to be very fond of investing in startups, but he has recently changed his investment strategy. He plans to shift his investment focus from traditional venture capital to the semiconductor and artificial intelligence fields. At the same time, he is selling off some of the assets held by his "Vision Fund" to prepare for entering the AI and related hardware sectors
Has Masayoshi Son shifted his investment focus to the semiconductor and artificial intelligence industries?
On May 10th, according to media reports, there is a flagship investment fund under SoftBank Group called the "Vision Fund", which is one of the world's largest venture capital funds. This fund used to be very fond of investing in startups, especially those with potential in the technology sector. Previously, SoftBank's founder Masayoshi Son had a strong interest in venture capital deals, but recently, Masayoshi Son has changed his strategy. He has started to reduce traditional venture capital investments and shift towards strategic investments in high-tech industries such as semiconductors and artificial intelligence.
It is reported that the reason Masayoshi Son plans to shift his investment focus to the semiconductor and artificial intelligence fields is inspired by the success of its chip design company Arm. Since going public last year, Arm's market value has soared to around $106 billion, making the value of SoftBank Group's 90% stake in Arm exceed the overall market value of SoftBank Group itself.
One bold plan Masayoshi Son is considering now is to support a $100 billion chip company to challenge chip industry giant NVIDIA and provide semiconductors to support the development of AI services. Although the plans of this 66-year-old entrepreneur are still evolving, his direction is already very clear.
Media reports citing informed sources said that Masayoshi Son is now selling off some fund assets in preparation for entering the AI and related hardware fields. Data shows that the value of the Vision Fund's investment portfolio in US listed companies has shrunk by nearly $29 billion. Specifically, since the end of 2021, the Vision Fund has gradually sold off some of its holdings in US listed companies, such as companies like Coupang, DoorDash, and Grab, whose stock prices have also declined.
It is understood that SoftBank Group's asset sales are disclosed through 13F filings submitted to the US Securities and Exchange Commission, which represent only the fund's holdings in US listed companies, accounting for about half of the fair value of its publicly listed company investment portfolio. In addition, the Vision Fund is also gradually reducing its stake in Indian startup Paytm, with SoftBank's stake in the company now below 5%.
Of course, in the process of selling, in order to minimize market disruption, SoftBank has deployed an internal professional team to conduct transactions. According to sources, there is a dedicated team within SoftBank, with many traders who previously worked at places like Goldman Sachs. Their job is to help the Vision Fund sell off a large number of shares it holds, convert them into cash, and try not to let these transactions affect the normal operation of the stock market.
The current Vision Fund is much smaller and has laid off many people compared to before, and new investments have also slowed down significantly