Softbank has committed to being part of the massive $500 billion fundraise for OpenAI, but CEO Masayoshi Son believes that it could be a sound financial investment.
In a recent interview, Son addressed concerns about the seemingly exorbitant sums being poured into artificial intelligence, arguing that the potential returns dwarf the current investment levels. His perspective challenges the conventional wisdom of cost-cutting and efficiency, suggesting a bolder approach is necessary in the face of a technological revolution.
Son’s rationale hinges on the transformative power of AI. “Some people say, after the ‘DeepSeek‘ syndrome, ‘Oh, you are overspending. You are spending $500 billion, you’re overspending. You know, you can save so much more by spending less.’ But I think you are looking at it the wrong way,” he explained. He then posed a critical question: “How much of global GDP will be replaced by something a billion times smarter?”
Son’s answer is staggering. He estimates that within the next decade, AI-driven solutions will replace at least 5% of the global GDP, potentially reaching as high as 10%. To put this into perspective, 5% of the current global GDP translates to roughly $9 trillion, while 10% represents a colossal $18 trillion.
This projection forms the bedrock of Son’s investment thesis. “If that’s the amount of return, you shouldn’t be scared of spending a few trillion dollars if it returns $9 to $18 trillion per year,” he argues. “Why should you try to be efficient? For what? I don’t get it.”
Son’s bullish stance comes at a time of both excitement and apprehension surrounding AI. The rapid advancements in generative AI, exemplified by technologies like ChatGPT, Gemini and Grok, have showcased the potential of AI to reshape industries. However, concerns about job displacement, ethical implications, and the potential for misuse remain prevalent.
Son’s seemingly extravagant investment strategy is not without precedent. He is known for his bold bets on emerging technologies, some of which have yielded spectacular returns, while others have resulted in significant losses. His unwavering belief in the transformative power of AI, however, suggests that he views this as a bet worth taking, despite the inherent risks. Only time will tell if his vision of an AI-powered future, and the massive investments underpinning it, will ultimately pay off.