SoftBank Group is set to lay off nearly 20% of its Vision Fund team globally as it doubles down on large-scale artificial intelligence (AI) investments spearheaded by founder Masayoshi Son. This move signals a major strategic shift for the Japanese investment conglomerate, marking a return to Son's classic high-risk, high-reward approach.
The job cuts, impacting over 50 employees, represent the third round of layoffs at the Vision Fund since 2022. However, unlike previous reductions driven by substantial losses, this restructuring comes on the heels of the fund's strongest quarterly performance since June 2021, fueled by gains in public holdings like Nvidia and Coupang. This suggests a deliberate pivot rather than a reaction to financial distress.
The restructuring underscores SoftBank's ambition to be at the forefront of the AI revolution. Masayoshi Son has repeatedly expressed his vision of Artificial Superintelligence (ASI), a form of AI vastly exceeding human cognitive abilities, and believes SoftBank's purpose is to realize this future. He sees the company's previous investments, including those in Alibaba and Arm Holdings, as merely a "warm-up" for his grand AI dream.
SoftBank's AI strategy is multifaceted, encompassing semiconductor leadership and infrastructure dominance. Arm Holdings, the chip design firm majority-owned by SoftBank, is central to this strategy, with its chip designs powering data centers. SoftBank is also investing heavily in AI infrastructure, most notably through the proposed $500 billion "Stargate" project. This initiative aims to build a vast network of AI data centers across the U.S. and potentially in other locations like Abu Dhabi and Norway, powered by renewable energy and equipped with cutting-edge Nvidia systems.
These data centers are designed to support low-latency AI applications, positioning SoftBank to capitalize on the growing demand for AI infrastructure. The company has also made significant investments in AI companies, including a substantial stake in OpenAI, the creator of ChatGPT. While the exact figures vary across reports, SoftBank's investment in OpenAI is estimated to be around $9.7 billion and could potentially reach $30 billion.
Despite the enthusiasm, SoftBank's AI-focused strategy carries considerable risks. The capital-intensive nature of infrastructure projects like Stargate, coupled with regulatory hurdles and execution challenges, could pose significant obstacles. Recent delays in the Stargate project and a similar venture in Japan highlight these risks. Furthermore, Son's aggressive pursuit of new investments in foundation models and infrastructure, sometimes at premium valuations, raises concerns about potential overspending.
The shift towards AI also raises questions about the Vision Fund's original venture capital model. By concentrating resources on a smaller number of large-scale AI projects, the fund is moving away from its previous strategy of investing in a broad portfolio of startups. This change in approach may reduce the need for a large investment team, contributing to the recent layoffs.
Despite the workforce reduction, SoftBank maintains a strong financial position, with approximately 4 trillion yen in cash as of August 2025. This financial stability allows the company to pursue its ambitious AI goals even as it streamlines its operations. The success of SoftBank's AI gamble remains to be seen, but Masayoshi Son's unwavering commitment and the company's strategic investments suggest a determined effort to shape the future of artificial intelligence.
