SoftBank CEO says AI buildout may need $5 trillion a year
Masayoshi Son dismissed AI bubble concerns and said global spending on data centers, chips and power systems must rise sharply.
By Hana Yoshida · Markets Reporter
2 min read
SoftBank Group Chief Executive Masayoshi Son said the global buildout for artificial intelligence may require nearly $5 trillion in annual investment, according to Fortune. His estimate underscores the scale of spending he believes is needed for data centers, chips, power systems and other infrastructure as AI use expands.
Speaking Tuesday at an annual SoftBank event in Tokyo, Son rejected concerns that AI investment has become a bubble. Fortune reported that he called the question foolish and said AI would reshape daily life while creating profits.
Son also criticized skeptics who oppose the technology, saying those who resist change narrow their own world and likening condemnation of AI to “spitting upward,” according to Fortune. He compared doubts about AI’s usefulness to earlier resistance to cars and airplanes.
Market worries over AI spending
Financial markets have shown rising concern that AI-related stocks and infrastructure spending have climbed faster than expected returns. Fortune cited worries around companies such as Nvidia and the heavy capital flowing into data centers as investors question whether profits will match the expectations built into share prices.
Son’s remarks put SoftBank firmly on the side of continued AI expansion. He founded SoftBank more than 40 years ago and became one of Japan’s best-known technology investors, according to Fortune. The company has committed tens of billions of dollars to AI-linked businesses.
Son told the Tokyo audience that by 2040, about 20% of global gross domestic product would be replaced by AI-related industries and what he called the world of superintelligence, Fortune reported. The projection reflects his view that AI will account for a large share of future economic activity.
SoftBank’s AI push
SoftBank manages a wide range of holdings through its Vision Funds and also has telecommunications and energy operations, according to Fortune. The company has increasingly centered its investment strategy on AI and the infrastructure needed to support it.
SoftBank has invested $34.6 billion in OpenAI, Fortune reported. The company also sold its stake in Nvidia last year to raise money for further AI and data center investments.
The group recently began a battery business in Japan, according to Fortune. SoftBank is building that operation as part of a plan to develop next-generation electric power infrastructure, anticipating that AI systems will drive higher electricity demand.
SoftBank Group Corp. earlier reported that profit for the fiscal year through March rose nearly fivefold to 5 trillion yen, or $32 billion, from the previous year, Fortune reported. The company attributed the increase to gains from its AI investments.
This story draws on original reporting from Fortune.