SoftBank's Strategic Shift: From AI Hardware to AI Software Leadership

In October 2025, SoftBank Group Corp. executed a landmark maneuver in the artificial intelligence (AI) landscape, . This move, described by CFO as a "strategic necessity,"Coinpaper underscores a broader reallocation of capital from AI hardware to software-driven platforms. While SoftBank retains its 90% ownership of Arm-a critical player in AI chip design-the company's pivot reflects a calculated bet on the future of AI: software ecosystems that democratize access to advanced capabilities.

The AI Sector's Momentum: From Compute to Code

The AI software sector is experiencing unprecedented growth, driven by surging demand for generative AI infrastructure and enterprise applications. Venture capital funding for AI startups in the U.S. , with 62% of Q3 2025 investment dollars flowing into software-focused firms like Anthropic, OpenAI, and MistralAI. The average deal size has jumped 86% year-over-year to $49.3 million, . For instance, , , according to a JDSupra report.

This shift is not merely financial but structural. As AI models grow more complex, the cost of training and deployment has become prohibitive for many enterprises, creating a "picks-and-shovels" opportunity for infrastructure providers. , software-adjacent infrastructure, as noted in the JDSupra report. Yet, the real value is increasingly captured by platforms that abstract this complexity-like OpenAI's APIs or Palantir's AI Platform (AIP), which saw 121% year-over-year revenue growth in Q3 2025, according to a Markets report.

SoftBank's Strategic Moves: Beyond OpenAI

SoftBank's investment in OpenAI is part of a broader strategy to position itself at the nexus of AI software innovation. The company has launched a 50:50 joint venture with OpenAI, "SB OAI Japan," to localize enterprise AI solutions for the Japanese market. This venture, which will offer a packaged product called "Crystal Intelligence," as reported by the UKIYO Journal, highlights SoftBank's intent to leverage OpenAI's technology in sectors like logistics, healthcare, and customer service.

Simultaneously, SoftBank is deepening its ties to the AI infrastructure ecosystem. It has joined forces with OpenAI and Oracle on the $500 billion "Stargate" project, a U.S.-based initiative to build AI-specific data centers and power infrastructure, according to a Capacity Global report. This collaboration mirrors the broader industry trend of strategic alliances to secure compute resources, a critical bottleneck for AI development, as noted in the Capacity Global report.

Investment Opportunities in AI Software and Infrastructure

The capital reallocation from hardware to software is creating fertile ground for investors. Startups that bridge the gap between cutting-edge AI models and enterprise applications are attracting disproportionate attention. For example, , driven by its Polaris foundation model and Amelia platform, according to a Cryptorank report. Similarly, , positioning itself as a leader in secure AI for defense and finance, according to the Cryptorank report.

M&A activity further validates this trend. In Q3 2025 alone, , with enterprise software giants like Workday and Salesforce acquiring AI startups to accelerate their roadmaps. These consolidations suggest that the next phase of AI growth will be defined by integration-embedding AI into existing workflows rather than building standalone tools.

Conclusion: The Future of AI Investment

. While hardware remains essential, the sector's momentum is increasingly software-driven, with platforms and infrastructure startups capturing the lion's share of capital. For investors, the lesson is clear: the future of AI lies not in owning the silicon but in orchestrating the ecosystems that make AI accessible, scalable, and profitable.

, according to a Bloomberg report, the company's trajectory offers a blueprint for navigating the AI revolution. The question for investors is no longer whether AI will reshape industries but which players will dominate the software layer that sits atop the hardware.