Is SoftBank's Vision Fund Really Shifting Focus to AI with 20% Workforce Layoffs?
Click to start listening
Synopsis
SoftBank's Vision Fund announces a significant workforce reduction of 20% as it shifts its focus towards AI investments, raising questions about its future direction. With ambitious plans including a $30 billion investment in OpenAI and a $2 billion stake in Intel, SoftBank is positioning itself as a leader in the AI revolution.
Key Takeaways
- SoftBank's Vision Fund is laying off 20% of its workforce.
- The fund is pivoting its focus towards artificial intelligence.
- Plans include a $30 billion investment in OpenAI.
- SoftBank is also investing $2 billion in Intel.
- The Stargate initiative aims to establish AI data centers in the U.S.
New Delhi, Sep 19 (NationPress) The renowned Japanese investment powerhouse, SoftBank Group Corp, is set to reduce its workforce by about 20 percent as its founder, Masayoshi Son, pivots the $100 billion Vision Fund's emphasis towards artificial intelligence. Reports indicate that over 50 of the fund's 282 employees will be affected by these layoffs. A spokesperson from the company noted that this move is in line with its long-term strategy to prioritize substantial investments in AI and groundbreaking technologies.
Among Masayoshi Son's ambitious plans in the AI sector are a projected $30 billion investment in OpenAI and a $6.5 billion acquisition of chip designer Ampere Computing, which is currently under regulatory examination. To date, SoftBank has invested approximately $10 billion in OpenAI.
Furthermore, the company has teamed up with OpenAI and Oracle on an ambitious $500 billion Stargate initiative aimed at establishing AI data centers in the U.S. and is contemplating a staggering $1 trillion AI industrial park in collaboration with TSMC.
Since its inception in 2017, the Vision Fund reached a peak workforce of 474 employees in March 2020. In a bid to secure funding for large-scale AI investments, SoftBank has slashed its workforce by 40 percent, deeming an extensive team of investment advisors unnecessary for managing new or existing deals.
Last month, SoftBank entered into a securities purchase agreement, committing to a $2 billion investment in Intel. Both entities expressed their strengthened commitment to investing in advanced technology and semiconductor innovation in the United States.
Masayoshi Son emphasized that this strategic investment underscores the company's conviction that advanced semiconductor manufacturing and supply will significantly grow in the U.S., with Intel playing an essential role.
As per the agreement, SoftBank will acquire Intel shares at $23 each. This investment further solidifies SoftBank's vision of catalyzing the AI revolution by enhancing access to advanced technologies that facilitate digital transformation, cloud computing, and next-generation infrastructure.
Point of View
The developments at SoftBank's Vision Fund underscore a broader trend in the investment landscape, reflecting an increasing focus on AI technologies. While layoffs can be concerning, they may also signal a strategic realignment that could foster innovation and growth in the tech sector, ultimately benefiting the economy.
NationPress
20/09/2025
Frequently Asked Questions
Why is SoftBank laying off employees?
SoftBank is laying off employees to align its workforce with a strategic shift towards investing in artificial intelligence, as announced by founder Masayoshi Son.
How much is SoftBank investing in OpenAI?
SoftBank plans to invest around $30 billion in OpenAI as part of its focus on AI technologies.
What is the Stargate initiative?
The Stargate initiative is a proposed collaboration between SoftBank, OpenAI, and Oracle to create AI data centers in the U.S., backed by a budget of $500 billion.
What does SoftBank's investment in Intel signify?
SoftBank's $2 billion investment in Intel highlights its commitment to advancing semiconductor technology and supporting the growth of AI in the U.S.
What was the peak workforce of the Vision Fund?
The Vision Fund had a peak workforce of 474 employees in March 2020 before the recent layoffs.
