SoftBank Group's AI Bet and Vision Fund Layoffs: A Catalyst for Change or a Risky Shift?

SoftBank Group has laid off 20% of its Vision Fund workforce to focus on large-scale AI initiatives, including a data center project with OpenAI. This marks a shift from broad startup investing to concentrated bets in AI and chip infrastructure. The move aims to reshape SoftBank's long-term investment outlook, but investors should be aware of heightened exposure to tech asset valuations and uncertain exit opportunities for its holdings.

SoftBank Group has announced a significant restructuring of its Vision Fund, laying off nearly 20% of its workforce to concentrate on large-scale artificial intelligence (AI) initiatives. The move marks a strategic pivot away from broad startup investments and towards high-risk, high-reward bets in AI and chip infrastructure.

The layoffs, which affect around 20% of the 44-person Vision Fund team, come after the fund reported its strongest quarterly performance since June 2021, driven by gains in public holdings such as Nvidia and South Korean e-commerce firm Coupang SoftBank Vision Fund to lay off 20% of employees in shift ...^[1]. The restructuring is part of a broader strategy to support the AI ambitions of founder Masayoshi Son, who is aggressively pursuing new investments in foundation models and infrastructure.

The Vision Fund is shifting resources to Son’s ambitious AI initiatives, including a proposed $500 billion Stargate project—a vast network of U.S. data centers in partnership with OpenAI. SoftBank has also invested $9.7 billion in OpenAI through Vision Fund 2, which manages about $65.8 billion in total SoftBank Vision Fund to lay off 20% of employees in shift ...^[1]. Additionally, the company is building an ecosystem spanning chips, data centers, and models to support future AI adoptions by acquiring firms like Graphcore, Ampere Computing, and taking stakes in Intel and Nvidia.

This strategic shift reflects Son's classic high-risk, high-reward approach, moving away from the sprawling venture capital model that defined the Vision Fund’s previous era. The move carries execution risk, as evidenced by recent delays in the U.S. Stargate project and a similar joint venture with OpenAI in Japan SoftBank Vision Fund to lay off 20% of employees in shift ...^[1].

Despite the strong recent performance, investors should be aware of the heightened exposure to tech asset valuations and uncertain exit opportunities for the fund's holdings. SoftBank CFO Yoshimitsu Goto stated that the company holds a "very safe level" of cash of 4 trillion yen ($27 billion) on the company's most recent earnings call in August SoftBank Vision Fund to lay off 20% of employees in shift ...^[1].