SoftBank Vision Fund to Cut 20% of Staff Amid AI Investment Shift
SoftBank Group is set to reduce its Vision Fund workforce by nearly 20% as part of a new focus on artificial intelligence. This strategic shift reflects founder Masayoshi Son’s renewed ambition to make bold, high-risk investments in AI, particularly in the United States.
A memo seen by Reuters and a source familiar with the matter confirmed the job cuts. Vision Fund currently employs over 300 people worldwide. These reductions represent the third round of layoffs since 2022 but come at a time when the fund is performing well. In the last quarter, Vision Fund posted its strongest results since mid-2021, thanks to gains from public holdings such as Nvidia and South Korean e-commerce firm Coupang.
Resources Redirected to Major AI Projects
SoftBank’s new direction marks a move away from its previous broad approach to investing in start-ups. While new investments will continue, the remaining staff will now focus more heavily on Son’s AI ambitions. These include the proposed $500 billion Stargate project, a massive US-based data centre network being planned in partnership with OpenAI.
A Vision Fund spokesperson confirmed the layoffs, stating the company was adjusting its structure to better pursue its long-term strategy. This includes making strong, focused investments in AI and other breakthrough technologies aimed at creating long-term value.
Return to High-Risk Strategy After Venture Capital Setbacks
The shift signals a return to Son’s earlier investment style—large, targeted bets with high potential returns. This contrasts with the venture capital approach that previously defined the Vision Fund’s strategy, particularly during a time when it was forced to cut risks and recover from heavy losses, including its investment in WeWork.
Now, Son is pursuing capital-intensive investments in foundational AI technologies and infrastructure. Over the past year, Vision Fund 2 has invested $9.7 billion in OpenAI and is also focusing on building an ecosystem that includes chips, data centres, and AI models.
Capital-Heavy Moves Bring New Challenges
SoftBank’s AI plans include acquiring or investing in chip firms like Graphcore, Ampere Computing, and stakes in Intel and Nvidia. The goal is to support AI growth with a full infrastructure layer.
However, this strategy comes with challenges. Reuters recently reported delays in both the US Stargate project and a similar joint venture with OpenAI in Japan. These delays highlight the risks of managing such large-scale investments.
Despite the aggressive shift, SoftBank says it remains financially stable. During its August earnings call, CFO Yoshimitsu Goto confirmed the group held around 4 trillion yen ($27 billion) in cash, which he described as a “very safe level”.
with inputs from Reuters