SoftBank's Vision Fund to lay off 20 pc of its workforce to focus on AI

New Delhi, Sep 19
Japanese investment giant SoftBank Group Corp’s Vision Fund is laying off approximately 20 per cent of its workforce as founder Masayoshi Son shifts the $100 billion fund's focus towards artificial intelligence.

Over 50 of Vision Fund's 282 employees are expected to be laid off due to job cuts, according to multiple reports. The company spokesperson said that the decision aligns with the organisation's long-term strategy to focus on significant investments in AI and breakthrough technologies.

Masayoshi Son's AI plans include an investment of around $30 billion in OpenAI and a $6.5 billion deal to acquire chip designer Ampere Computing, which faces regulatory scrutiny. SoftBank has so far invested roughly $10 billion in OpenAI.

It has partnered with OpenAI and Oracle on a proposed $500 billion Stargate initiative to establish U.S. AI data centres and is considering a $1 trillion AI industrial park with TSMC.

The Vision Fund, launched in 2017, had a workforce of 474 at its peak in March 2020. SoftBank has reduced its assets and cut its workforce by 40 per cent to secure funding for sizable AI investments, as it felt unnecessary to have an army of investment advisers to oversee fresh or existing deals.

Last month, Softbank signed a securities purchase agreement under which, SoftBank will make a $2 billion investment in Intel. Both companies said that they have deepened their commitment to investing in advanced technology and semiconductor innovation in the United States.

Masayoshi said that the strategic investment reflected the company’s belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.

Under the terms of the agreement, SoftBank will pay $23 per share of Intel common stock. SoftBank’s investment in Intel builds upon its long-term vision of enabling the AI revolution by accelerating access to advanced technologies that support digital transformation, cloud computing, and next-generation infrastructure.