SoftBank Vision Fund to cut 20% workforce amid AI pivot
What's the story
SoftBank's Vision Fund is considering a major workforce reduction, with up to 20% of its employees potentially facing layoffs. The move comes as part of a broader strategy by founder Masayoshi Son to focus on ambitious investments in artificial intelligence (AI). The fund, which employed around 282 people at the end of March, could see more than 50 roles eliminated.
Strategic pivot
Shift in investment strategy
The potential job cuts highlight a major shift in the Vision Fund's focus from its previous investment strategy to Son's increasing interest in large-scale AI investments. In the past 12 months, Son has invested $9.7 billion in OpenAI through Vision Fund 2, which manages about $65.8 billion in total. The Vision Fund also plans to acquire chip designer Ampere Computing for $6.5 billion, although this deal is under regulatory scrutiny.
Infrastructure initiatives
Major AI industrial park project in the works
SoftBank has partnered with OpenAI and Oracle Corp. for a $500 billion worth Stargate project to build AI data centers and infrastructure across the US. Son is also working on a major project to create an AI industrial park, looking for a partnership with Taiwan Semiconductor Manufacturing Co. The Vision Fund, which launched in 2017 and employed up to 474 people at its peak in March 2020, has seen its workforce shrink by some 40% since.