SoftBank Seeks Up to $100 Billion from Gulf for New AI Fund
Masayoshi Son is approaching Middle Eastern investors for a new vehicle aimed at acquiring businesses and modernizing them with artificial intelligence and robotics.
Key takeaways
- SoftBank Group is holding preliminary talks with Gulf investors, including in the UAE, to raise up to $100 billion for a new AI fund.
- The planned vehicle aims to acquire companies and overhaul their operations using artificial intelligence and robotics from SoftBank subsidiary Roze.
- The ambitious fundraising bid comes as SoftBank carries heavy debt, having already deployed $65 billion into OpenAI while issuing over $11 billion in high-yield bonds.
- SoftBank shares dropped as much as 7.3% in Tokyo following the reports, weighed down by concerns over the pace of OpenAI's revenue growth.
SoftBank Group is seeking to raise as much as $100 billion from Gulf investors to bankroll a major new artificial intelligence investment fund, according to a report from the Financial Times cited by The Japan Times. Founder and Chief Executive Masayoshi Son has conducted preliminary talks in recent weeks with sovereign and institutional figures in the Middle East, including contacts in the United Arab Emirates. The proposed vehicle would acquire companies and integrate machine learning and robotics to modernize their operations.
The fundraising talks reflect Son's continued determination to position the Japanese conglomerate at the center of the global AI boom, even as market participants scrutinize the company's financial leverage and capital commitments. SoftBank representatives declined to comment on the talks, and Son's outreach remains at an early stage with no binding financial commitments secured, according to reporting detailed by Benzinga. Following news of the discussions, SoftBank shares fell as much as 7.3% in Tokyo trading on October 9, 2026, weighed by concerns over the pace of OpenAI's revenue growth.
Operational Focus and the Role of Roze
According to the Financial Times report, the fund would acquire target businesses outright and introduce automation, machine learning systems, and physical machinery to improve baseline business operations.
Central to this strategy is Roze, SoftBank's specialized robotics and physical AI arm, as highlighted by Benzinga. Son has consistently predicted substantial returns from embodied AI and autonomous machines designed to manipulate real-world objects. SoftBank is concurrently preparing an initial public offering in the United States for Roze.
Beyond robotics, SoftBank has pursued broader industrial infrastructure components. Subsidiary SB Energy is preparing to list on the Nasdaq exchange while managing construction of an 8.8-gigawatt data center facility located in Ohio.
Gulf Ties and Regional Economic Context
To secure the $100 billion target, Son is returning to the Middle Eastern sovereign backers who helped establish the first Vision Fund in 2017. That original vehicle gathered nearly $100 billion in commitments, largely anchored by Saudi Arabia's Public Investment Fund (PIF) and Abu Dhabi's Mubadala Investment Company. Gulf sovereign funds continue to seek opportunities to diversify regional economies beyond hydrocarbons by channeling oil wealth into AI infrastructure and technology.
However, the fundraising landscape in late 2026 faces distinct regional headwinds. Son is approaching regional backers at a time when Gulf economies are navigating economic contraction risks tied to the Iran war, which entered its eighth month in October 2026. SoftBank also faces scrutiny over follow-through on past joint initiatives. In 2025, SoftBank announced a $500 billion data center project in the United States alongside OpenAI, Oracle, and Abu Dhabi-backed AI investment company MGX, though that initiative has yet to demonstrate material progress as reported by The Japan Times.
SoftBank's previous fund track record also presents a complex history for prospective limited partners. The first Vision Fund achieved cumulative net investment gains of approximately $29 billion through the end of June 2026, driven by stakes in high-performing assets like ByteDance alongside high-profile write-downs such as WeWork. Meanwhile, Vision Fund 2 recorded cumulative gains of $20.5 billion through June 2026.
Mounting Debt and OpenAI Exposure
The talks arrive while SoftBank manages significant balance-sheet obligations tied to its concentrated exposure to OpenAI. SoftBank has deployed roughly $65 billion into the ChatGPT developer to date, including a $30 billion tranche made earlier in the year that gave SoftBank a 13% ownership stake, according to Benzinga. OpenAI has simultaneously sought an additional $30 billion in new funding at a $1.4 trillion valuation while pushing back its planned initial public offering, creating delays for investors anticipating liquidity.
To fund its massive OpenAI outlays, SoftBank has increasingly leaned on private and public debt markets:
- Record Junk Bond Issuance: In September 2026, SoftBank completed the largest high-yield corporate bond sale globally, raising $11.1 billion as detailed by CNA, with coupon yields reaching up to 9.75% reported by Benzinga.
- Apollo Debt Facility: Private credit manager Apollo Global Management recently engaged in discussions to increase its loan facility to SoftBank's Vision Fund II from $5.4 billion up to $9 billion.
- Margin Borrowing: SoftBank explored securing a $10 billion margin loan backed directly by its private equity shares in OpenAI to unlock liquidity for continuing corporate expenditures.
These financing moves have drawn warnings from credit evaluators. In March 2026, S&P Global Ratings downgraded SoftBank Group's credit rating, noting that additional OpenAI commitments eroded financial headroom and designating OpenAI among SoftBank's holdings with weaker credit profiles. While S&P subsequently affirmed SoftBank Corp.'s BBB credit rating with a stable outlook citing operational stability despite rising investments in AI and data centers, analysts caution that delays in OpenAI's public debut or any valuation markdown could trigger broader contagion throughout SoftBank's leveraged capital structure.
SoftBank has defended its liquidity buffer, reporting a net asset value of $457 billion (¥72.3 trillion) at the close of June 2026. The firm's loan-to-value ratio registered at 13%, remaining comfortably below its self-imposed normal operating ceiling of 25%.
Frequently asked questions
What is SoftBank's planned $100 billion fund designed to do?
According to the Financial Times, the proposed vehicle would acquire operating companies and use artificial intelligence, automation, and physical robotics from SoftBank's Roze unit to improve their business efficiency.
How much has SoftBank invested in OpenAI?
SoftBank has invested approximately $65 billion in OpenAI, which includes a $30 billion investment completed in early October 2026 that gives the Japanese firm a 13% ownership stake.
Why did SoftBank shares drop following the news?
SoftBank shares fell up to 7.3% in Tokyo trading on October 9, 2026, driven by concerns over the pace of OpenAI's revenue growth.
Sources
- SoftBank seeks $100 billion from Gulf states for AI, FT saysThe Japan Times · Oct 9, 2026
- SoftBank seeks up to $100 billion from Gulf investors for AI push, FT reportsCNA · Oct 9, 2026
- SoftBank Wants up to $100 Billion From Gulf Investors for AI — but Its $65 Billion OpenAI Bet Is Raising Eyebrowsbenzinga.com · Oct 9, 2026
How this story was made: the newsroom picked it up from Techmeme and Reddit, gathered the full text of the sources above, and drafted it with AI assistance. Every factual claim was then checked against those sources before publishing (40 claims checked). Illustrations marked as AI-generated are not photographs. Spotted an error? Tell us.
Published October 10, 2026 at 00:50 UTC
