SoftBank seeks up to $100B from Gulf investors for AI buyout fund

Masayoshi Son, Chief Executive Officer of SoftBank, aims to acquire about $100 billion from Gulf investors to acquire businesses and enhance their performance with the help of AI.

If the new fund becomes a reality, it will move SoftBank away from investing in the companies that develop AI technology and focus on implementing this technology in established companies. At the moment, the fundraising has not been confirmed.

A fund to buy businesses, not just back model makers

Recently, Son has been reported to have talked to senior figures in the United Arab Emirates. Reuters could not independently verify the meetings, nor did SoftBank respond to a request for comment.

The fund will acquire operating companies and utilize AI to enhance their performance. This is different from SoftBank’s past investments in AI models, chips, and data centers. The focus would be shifted to monetizing businesses already serving customers.

At the moment, the $100 billion remains a target with no confirmed commitments from investors.

$64.6 billion already tied to OpenAI

The current AI-related obligations of SoftBank are considerable. In an announcement on October 1, the company disclosed that it had made its last payment of $10 billion in the context of a total investment of $30 billion in OpenAI. Thus, SoftBank’s investment in the company reached $64.6 billion, which gives the firm almost 13% of ownership in OpenAI.

The company financed the payment through senior notes denominated in foreign currencies. The company also cancelled $10 billion in unused capacity in bridge loans on September 30 after it repaid all the loans that it had taken.

As per earlier reports by Cryptopolitan, SoftBank has managed to raise around $11 billion through dollar and euro bonds. The return on SoftBank’s dollar debts that would be due in 2031 was about 8,2% in September, which is higher compared to 6,7% in January.

These increasing rates of borrowing are one of the causes behind the importance of drawing investors from the outside.

The $6 trillion question

The more pressing question is if and how AI can generate sufficient revenues to cover the expenditures involved.

According to Bain & Company, the industry must achieve $6 trillion in revenue on a yearly basis by 2031, in order to accommodate the expected demands for computing. The existing applications might yield between $1.2 trillion and $1.8 trillion, leaving about $4.2 trillion to be raised from different sources of new revenue.

As stated by David Crawford from Bain:

“The economics of AI infrastructure demand trillions in new revenue beyond productivity gains.”

There is also increasing concern over how funding for AI is being raised. UBS has pointed to the growing links between AI-related borrowing. Meanwhile, the Bank for International Settlements has raised doubts about the possibilities of substantial economic gains related to the development of AI.

For SoftBank, it will be necessary for the new fund to transform the progress made in AI into actual profits.

Why the Gulf, and why Washington is watching

Gulf investors offer substantial capital, but their technology partnerships also face geopolitical constraints.

The Middle East Institute has examined how US export restrictions, chip access and data-center security shape the region’s AI ambitions.

A SoftBank-Gulf fund could deepen those ties while expanding AI investment into established businesses. Whether it reaches $100 billion will depend on investor commitments that have yet to materialize.