SoftBank Seeks to Raise $100 Billion from the Gulf for AI Fund

Masayoshi Son, CEO of Japan's SoftBank Group, is seeking to raise up to $100 billion from investors in the Middle East for a new fund, according to the Financial Times citing informed sources. Reports indicate that he held talks with prominent figures in the UAE to discuss their participation in funding the venture, in a step reflecting the group's interest in attracting Gulf capital to tech projects.

The fund's proposed model is based on acquiring existing companies and then upgrading their operations relying on artificial intelligence and robotics, rather than founding new companies from scratch. SoftBank's robotics division, named "Roze", is expected to play a pivotal role in optimizing the operations of acquired companies, according to reports detailing the plan.

This endeavor comes at a time when Gulf sovereign wealth funds are expanding their investments in artificial intelligence and digital infrastructure, making them key players in financing major global tech projects. The Japanese group relies in this approach on its long experience in managing massive investment funds that focused in recent years on technology and innovation companies.

Reports emphasized that the fund itself and its financing have not yet been finalized, and that negotiations remain in an early stage with no guarantee of reaching a final agreement. They clarified that any Gulf financial commitment of this scale would be subject to evaluation by relevant authorities before approval, and that what has taken place so far consists of preliminary talks rather than a confirmed pledge with final figures.

What do these terms mean?

Investment Fund: A financial vehicle that pools money from multiple investors to invest in companies or assets, aiming to generate returns for its participants.

Sovereign Wealth Funds: State-owned funds that invest financial surpluses, including Gulf funds, which are among the world's largest investors.

Robotics: Automated devices that perform physical or operational tasks, used in factories, warehouses, and services to reduce costs and increase productivity.