SoftBank Wants up to $100 Billion From Gulf Investors for AI — but Its $65 Billion OpenAI Bet Is Raising Eyebrows

SoftBank Group Corp. is sounding out Gulf investors about raising as much as $100 billion for a new investment vehicle focused on artificial intelligence, even as questions mount over its growing exposure to OpenAI and the financing needed to sustain its AI ambitions. Founder Masayoshi Son has contacted senior figures in the Middle East, including the United Arab Emirates, in recent weeks, the Financial Times reported, citing people familiar with the discussions. The talks remain preliminary, with no commitments guaranteed.

The proposed vehicle would acquire companies and use AI and other advanced technologies to improve their operations, with SoftBank’s robotics and physical AI unit, Roze, expected to play a central role. The fundraising push comes as SoftBank faces scrutiny over its concentrated AI bets and the timeline for an OpenAI initial public offering. SoftBank has invested $65 billion in OpenAI, including a $30 billion follow-on investment earlier this year that gave it a 13% ownership stake, according to the company’s previous announcement.

, True Food Kitchen Bankruptcy Gulf Money, Growing Financing Needs Gulf investors have become major sources of capital for AI infrastructure and technology as regional governments seek to diversify their economies beyond oil and gas. The Financial Times identified Abu Dhabi-linked investment vehicles MGX and G42 as potential players in the broader funding landscape. Representatives for both firms did not respond to requests for comment, the FT said. SoftBank has previously secured substantial backing from the region, including support from Mubadala and Saudi Arabia’s Public Investment Fund for its first $100 billion Vision Fund in 2017.

The company has also increasingly relied on borrowing to support its investment strategy. 4 billion to as much as $9 billion, potentially providing additional financing capacity for the Japanese conglomerate. Earlier this year, SoftBank also pursued a $10 billion margin loan backed by its OpenAI stake, allowing it to borrow against the investment to finance additional spending. The financing push comes with rising borrowing costs.

75%. OpenAI Exposure Raises Stakes SoftBank’s expanding commitments have also drawn attention from credit-rating analysts. " The agency also identified OpenAI as one of SoftBank’s investments with the weakest credit quality. S&P later revised the outlook for SoftBank Corp.

to stable from negative while affirming its BBB rating, citing operational stability despite increased AI and data-center investments. SoftBank’s reported financial position offers some cushion. 3 trillion) at the end of June, with a loan-to-value ratio of 13%, below the 25% ceiling it uses under normal conditions. Its investment funds have also recorded substantial gains.

5 billion. Still, a decline in OpenAI’s valuation could ripple through SoftBank’s broader portfolio and financing strategy. An Asia-based analyst warned that the resulting "contagion effect" could escalate quickly, highlighting the risks of SoftBank’s increasingly concentrated bet on AI. 7 Trillion IPO Didn’t Save the VC Exit Market — 992 Unicorns Are Still Waiting