Vision

Wednesday

Billion

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">After a series of heavy quarterly losses, Japanese investment behemoth SoftBank Group had to take a defensive approach to prevent further fallouts. However, after amassing significant capital, the holding company is now <a aria-label="prepared to initiate (opens in a new tab)" href="https://www.cnbc.com/2023/06/21/softbank-to-shift-from-defense-mode-to-offense-mode-says-ceo-masayoshi-son.html" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">prepared to initiate</a> its “offense mode” again and plans to use it on its artificial intelligence bets.&nbsp;</p> 
<h3 id="softbank-accumulated-35-3-billion-in-cash-on-hand">SoftBank Accumulated $35.3 Billion in Cash on Hand</h3> 
<p>Masayoshi Son, CEO and chairman of the Japanese investment giant SoftBank Group, said during the annual shareholders’ meeting on Wednesday that the company is now ready to shift from its “defense mode” to “offense mode.”&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“In the past few years, we focused on being [on] ‘defense.’ Three years ago, we didn’t have a lot of cash on hand. But because we have been in defense mode, we have built our cash on hand to five trillion yen ($35.3 billion).”</p> <cite>– Masayoshi Son told the shareholders. </cite>
</blockquote> 
<p>The move comes after a <a href="https://tokenist.com/softbank-vision-fund-to-lay-off-30-of-global-workforce/" rel="dofollow" class="deco-link">challenging period</a> for SoftBank, which has incurred significant losses over the past few quarters. As a result, the Tokyo, Japan-based investment holding company was forced to take a much more cautious approach recently than its earlier aggressive strategy that made Softbank one of the world’s biggest startup investors.</p> 
<p>Last month, <a aria-label="SoftBank reported (opens in a new tab)" href="https://www.cnbc.com/2023/05/11/softbank-full-year-2022-earnings-vision-fund-posts-32-billion-loss.html" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">SoftBank reported</a> a record loss at its Vision Fund of $32 billion for the fiscal year that ended on March 31, 2022, nearly twice higher than the loss reported in the previous year. In Q4 alone, SoftBank’s Vision Fund 1, Vision Fund 2, and Latin American funds <a href="https://tokenist.com/softbanks-latam-and-vision-funds-lost-5-8bn-in-q4-2022/" rel="dofollow" class="deco-link">lost a combined $5.8 billion</a>, marking a fourth consecutive quarterly loss for its investment units.&nbsp;</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="chatgpt-led-ai-boom-urges-softbank-to-go-on-the-offensive">ChatGPT-led AI Boom Urges SoftBank to Go on the Offensive</h3> 
<p>After playing defense for months, SoftBank’s Son told the shareholders that “the time has come to shift to offense mode.” One of the primary reasons behind the timing of this shift is the <a href="https://tokenist.com/ai-can-boost-net-margins-for-companies-by-4-over-a-decade-report/" rel="dofollow" class="deco-link">ongoing AI boom</a>, Son stated.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“What I am interested in most, what I am working on most, is the AI revolution. I believe that mankind is going to be exceeded by computer or AI,” said Son. “We would like to be [in] the leading position for the AI revolution.”</p> <cite>– Son. </cite>
</blockquote> 
<p>While Son did not offer hints about AI companies that SoftBank is interested in, the billionaire tech entrepreneur said he is “a heavy user of <a aria-label="ChatGPT (opens in a new tab)" href="https://www.reuters.com/technology/chatgpt-sets-record-fastest-growing-user-base-analyst-note-2023-02-01/#:~:text=Feb%201%20(Reuters)%20%2D%20ChatGPT,a%20UBS%20study%20on%20Wednesday." target="_blank" rel="noreferrer noopener nofollow" class="deco-link">ChatGPT</a>” describing the chatbot as “amazing.” In addition, Son said that Sam Altman, CEO of the company that developed ChatGPT, is “one of the key people on Earth.”</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><em><strong>Do you think SoftBank could rise to its previous heights again amid the ongoing AI frenzy? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/after-32b-loss-in-may-softbank-to-go-on-offense-mode-with-ai/">After $32B Loss in May, SoftBank to Go On “Offense Mode” with AI</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

After $32B Loss in May, SoftBank to Go On “Offense Mode” with AI

Table of Contents

Tokenist

Other articles published on Jun 21, 2023

Millions of Stolen XRP Ripple Through Exchanges After Epic Heist

Luna Classic Achieves Tech Parity with Cosmos Chains: Joint L1 Task Force

Moody’s Analysts Unveil US Crypto and Bitcoin Stance: A Game Changer?

Singapore Regulators Propose a Common Protocol for Cryptocurrencies

SubWallet Releases Polkadot Staking Report H1 2023

Bitcoin Hits 29K – Why is The Crypto Market Up Today?

Join our free newsletter for daily crypto updates!