SoftBank Bets on Artificial Super Intelligence by 2035

Masayoshi Son, the CEO of SoftBank Group (TYO: 9984), has passionately vocalised his vision of the future, a future where artificial super intelligence (ASI) surpasses human intellect by several magnitudes. He predicts that by 2035, ASI will be 10,000 times smarter than the human brain. Son's conviction in this futuristic milestone is so strong that he suggests that hundreds of billions of dollars need to be invested to bring this evolution to fruition.

Son's belief in ASI goes beyond mere words; he is preparing to accumulate funds for what he describes as his “next big move.” Although details on this financial strategy were not disclosed, it is clear that Son perceives this move as a pivotal investment in the progression toward advanced AI capabilities.

The financial scope of Son's vision is astronomical. He estimates that generative AI would require about $900 trillion in cumulative capital expenditure, particularly pointing towards data centers and chips as the pivotal areas of investment. Interestingly, Son mentioned chip maker Nvidia as being undervalued, taking into account these projections. Nvidia, a leading producer of graphics processing units, is considered critical to AI development and could stand to gain greatly from the surge in demand for advanced AI capabilities.

SoftBank's own journey toward realizing these ambitious technological advancements has not been void of challenges. The Vision Fund, SoftBank's vehicle for investing in high-growth startups since 2017, has seen fluctuations in the value of its assets. As of June 2024, the funds collectively experienced a downturn of $2.4 billion. This may be indicative of the nascent and volatile nature of tech startups, but it also underscores the inherent risks of investing in pioneering and yet-to-mature technologies.

SoftBank's partnership with the Saudi Arabia's sovereign wealth fund PIF, which has invested $45 billion into the first Vision Fund, further demonstrates the scale of investment and international cooperation required to take on such colossal technological endeavors.

SoftBank's dramatic forecast for the evolution of AI paints a future of immense computational power and intelligence beyond human capability. Son's unwavering belief in this future positions SoftBank at the forefront of what could be a transformative era for technology and humanity. Yet, implementation of this vision will depend on strategic investments and enduring the ups and downs of the tech industry. It remains to be seen how these predictions will unfold and what ethical and practical implications artificial super intelligence will have on society as we progress towards 2035.