Masayoshi Son, the founder of Softbank Group Corp, is seeking to raise as much as $100 billion from Gulf region investors to support his artificial intelligence expansion plans.

People familiar with the matter said Son has held discussions in recent weeks with senior figures in the Gulf region, including the United Arab Emirates, and plans to use the raised capital to establish a large investment fund that would acquire companies and improve their operational efficiency by introducing artificial intelligence and other advanced technologies.

The plan comes as Softbank Group Corp continues to scale up its AI investments. The group has already invested $65 billion in OpenAI, and the massive capital commitment along with delays in OpenAI's listing process have raised concerns about its financial pressure.

Plans for $100 Billion Fund to Transform Acquired Companies Through AI

Son plans to use the new fund to acquire companies and enhance their operational efficiency and business performance through artificial intelligence, robotics and other advanced technologies.

Roze, Softbank Group Corp's robotics and physical AI business, is expected to play a central role in this strategy. The business is expected to provide automation and AI technical support to acquired companies, helping them improve operational processes.

Compared with Softbank Group Corp's previous approach of primarily participating in the growth of technology companies through equity investments, the new fund plans to apply AI technology directly to the daily operations of acquired companies to drive enterprise value growth.

However, the fundraising discussions are still at the deliberation stage, and it remains uncertain whether an agreement can ultimately be reached, nor is it clear how much potential investors would contribute.

$65 Billion Already Invested in OpenAI as Softbank Group Corp Continues to Expand Its AI Footprint

This $100 billion fundraising plan would further expand Softbank Group Corp's investment scale in the artificial intelligence industry.

Previously, Softbank Group Corp invested $65 billion in ChatGPT developer OpenAI as a key component of its AI investment strategy.

As investment commitments continue to grow, market attention on Softbank Group Corp's funding needs and financial risks is also rising. In particular, the delay in OpenAI's highly anticipated initial public offering has created greater uncertainty regarding the capital recovery timeline for Softbank Group Corp's related investments.

If the new fund is successfully established, Softbank Group Corp's investment scope in AI would further expand from large foundation model developers to the acquisition and technological transformation of traditional enterprises, with its robotics and physical AI businesses also taking on a more important role in this process.

Funding Needs Keep Climbing as Softbank Group Corp Issued Over $11 Billion in High-Yield Bonds Last Month

To support its expanding AI investment plans, Softbank Group Corp has become increasingly reliant on debt financing in recent years.

Last month, Softbank Group Corp completed a high-yield bond issuance of more than $11 billion, setting a record for such financing, with some bond yields reaching 9.75%.

The relatively high financing cost reflects the funding pressure Softbank Group Corp must bear to expand its AI investment scale.

As existing investment commitments continue to increase, the group needs to strike a balance between maintaining liquidity, managing debt costs and advancing new investments.

Seeking up to $100 billion from Gulf region investors this time also shows that Softbank Group Corp hopes to bring in external capital to provide financing support for its next phase of AI expansion.

If the fundraising plan makes progress, Softbank Group Corp would have the opportunity to further expand the application of AI technology in the operations of traditional enterprises. However, whether the new fund can ultimately be established still depends on the willingness of Gulf investors to contribute and the specific terms of the deal.