Shares in SoftBank Group Corporation surpassed their new all-time closing high, marking a significant achievement for Masayoshi Son after three difficult years. Shares in the Japanese technology company were buoyed by a global investment boom in artificial intelligence and semiconductors.
Investors are increasingly focusing on the Japanese technology company as its telecommunications division actively engages in funding innovative AI projects. This includes collaborations with Microsoft Corporation and startup Perplexity AI Inc. In addition, SoftBank has secured government subsidies to establish data centers equipped with Nvidia Corporation gas pedals. In addition, its semiconductor subsidiary, Arm Holdings Plc, is promoting its architecture as a solution for improving the energy efficiency of AI-powered devices.
AI, a strategic challenge for SoftBank
SoftBank sees AI as a crucial strategic issue for its future. The group recently invested between $10 and $20 million in startup Perplexity AI, valuing the company at $3 billion. This investment is part of a larger $250 million round of financing that triples Perplexity's valuation, making it one of the most highly-valued companies in the sector.
This deal underlines the extent to which SoftBank is set to greatly accelerate the pace of its investment in AI. Last week, its billionaire founder set out an ambitious vision for the future of AI, including a commitment to achieving what he calls "artificial superintelligence". Son spoke of creating an AI thousands of times smarter than any human being, making his grandest statements since SoftBank pulled out of the market following a series of failed investments in startups.
SoftBank's strategic partnerships
SoftBank has also forged strategic partnerships to further its AI ambitions. In April, the group announced the launch of a joint development project with Microsoft Japan to optimize its call centers with generative AI. The project, which will begin in phases from July 2024, is expected to reduce customer waiting times and standardize responses, contributing to greater customer convenience.
