SoftBank Pivots to AI with $1.5B Loss, Arm Chip Division, and Wayve Investment

SoftBank Group reports a narrowed annual loss of $1.5 billion, aided by profits from its Vision Fund and Alibaba shares sales. The company commits $5 billion to artificial intelligence technologies, establishing an AI chip division with Arm and investing in Wayve.

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SoftBank Pivots to AI with $1.5B Loss, Arm Chip Division, and Wayve Investment

SoftBank Pivots to AI with $1.5B Loss, Arm Chip Division, and Wayve Investment

SoftBank Group has reported a narrowed group, posts, annual, loss, tech, funds, recovery of $1.5 billion, aided by profits from its Vision Fund and sales of Alibaba shares. The Japanese conglomerate is now pivoting towards artificial intelligence (AI) technologies, committing $5 billion to the sector.

Why this matters: SoftBank's shift towards AI has significant implications for the tech industry, as it could lead to breakthroughs in autonomous vehicles, data centers, and renewable energy. This pivot could also have far-reaching consequences for the global economy, as AI technologies have the potential to transform industries and create new opportunities for growth.

SoftBank's shift to AI marks a significant change for the company, which previously focused on telecommunications and had a substantial group, entire, stake, jack, founded, company, caus in Chinese internet giant Alibaba. The company's net asset value has surged recently, thanks in part to its U.K. chip-design unit, arm.

As part of its AI strategy, SoftBank is establishing a new AI chip division with Arm, which aims to develop a prototype chip by spring 2025 and begin mass production later that year. arm, holdings, gears, ai will shoulder the initial development costs, estimated to be in the hundreds of billions of yen (approximately $642 million), with contributions from SoftBank.

SoftBank has also invested $1.05 billion in Wayve, a British AI company developing the next generation of autonomous vehicles using "embodied AI" technology. Wayve's approach integrates AI systems that interact with and learn from physical environments, enabling self-driving vehicles to handle unpredictable actions by drivers and pedestrians.

last, week, ai, top, headlines, artificial, intell SoftBank CEO Masayoshi Son envisions an "AI revolution," with plans for the company to expand into data centers, robotics, and power generation. SoftBank aims to build data centers equipped with Arm-designed semiconductor, chips in the U.S., Europe, Asia, and the Middle East as early as 2026, and is exploring renewable energy sources like wind and solar to power them.

SoftBank's pivot to AI comes after three consecutive years of losses, making this strategic shift crucial for the company's future. The move has been well-received by analysts, who believe leveraging Arm's technology and investing in AI services could position SoftBank for success in the rapidly evolving tech landscape.

With its $5 billion commitment to AI and key investments in Arm and Wayve, SoftBank is poised to become a major player in the AI revolution. As the company navigates this new direction, its progress will be closely watched by the tech industry and investors alike.

Key Takeaways

  • SoftBank reports $1.5 billion annual loss, aided by Vision Fund profits and Alibaba share sales.
  • SoftBank commits $5 billion to AI technologies, pivoting from telecommunications.
  • New AI chip division with Arm aims to develop prototype chip by spring 2025.
  • SoftBank invests $1.05 billion in Wayve, a British AI company developing autonomous vehicles.
  • SoftBank plans to expand into data centers, robotics, and renewable energy, envisioning an "AI revolution."