Full Breakdown
SoftBank Pursues Up to $100 Billion Gulf Fund for AI Expansion
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Core Event: SoftBank seeks Gulf capital for new AI investment vehicle
On October 9, SoftBank Group founder Masayoshi Son began discussions with senior officials in the United Arab Emirates and other Gulf sovereign-wealth investors about raising as much as $100 billion. The proposed fund would acquire companies and apply artificial-intelligence and robotics technologies—particularly from SoftBank’s Roze unit—to improve their operations. Financing would shift from SoftBank’s balance sheet and debt to external capital supplied primarily by Gulf investors, while SoftBank would identify targets and oversee AI-driven transformations.
Background & Context
SoftBank’s AI push accelerated after completing a $30 billion investment in OpenAI, the ChatGPT developer, as part of OpenAI’s latest financing round. Earlier in the year the group issued $11.1 billion of high-yield corporate bonds—the largest such sale globally—to fund its OpenAI stake. The company’s original Vision Fund, launched in 2017 with major contributions from Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala, raised $100 billion and has delivered mixed results, backing successes such as ByteDance and failures like WeWork. SoftBank’s robotics arm Roze is slated to play a central role in the new fund’s strategy.
Data & Statistics
- Total AI-related commitments by SoftBank total roughly $65 billion in OpenAI plus an additional $30 billion in the current OpenAI round.
- SoftBank has borrowed against its Arm Holdings stake three times this year, most recently increasing a margin loan by $5 billion in September to a total of $25 billion, and carries a $40 billion bridging loan that runs to March 2027.
- S&P Global reported a loan-to-value ratio of 33 % in March, about double SoftBank’s preferred 17 % figure.
- SoftBank’s share price fell close to 50 % since early June, and the cost of insuring its debt against default rose sharply despite a record net profit for the fiscal year ended March.
Official Statements & Responses
- A SoftBank spokesperson declined to comment on the fundraising talks.
- The Financial Times, citing people familiar with the matter, indicated that the proposed fund would acquire companies and use AI and machines—including those from Roze—to improve operations.
- Gulf sovereign investors have not responded to requests for comment, and Abu Dhabi-based AI investment firm MGX and AI holding company G42 also declined to comment.
Conflicting Reports & Gaps
- Reuters could not immediately verify the Financial Times report, noting the lack of direct confirmation from SoftBank.
- The exact timing and structure of the proposed fund remain unclear; sources describe the amount as a ceiling rather than a firm commitment, and negotiations are described as being in early stages.
Timeline
- October 9 2026 – SoftBank’s discussions with Gulf officials reported.
- October 1 2026 (scheduled) – Final tranche of SoftBank’s $64.6 billion OpenAI commitment expected to close.
What’s Next
SoftBank aims to finalize the Gulf fundraising while continuing to deploy capital in AI and robotics acquisitions. The effort’s success will depend on securing sovereign-wealth commitments and on the performance of OpenAI’s revenue, which has plateaued near a $25 billion annualized run rate according to recent industry reports.