Son has reportedly approached senior figures in the United Arab Emirates and other Gulf states in recent weeks to secure backing. SoftBank's robotics and physical AI division, Roze, would play a major role in transforming acquired companies, though exact details remain unclear. Son eventually intends to take Roze public at a substantial valuation.
The initiative comes as SoftBank grapples with the risks of its $65 billion investment in OpenAI, which remains the centerpiece of its investment strategy. The company has financed its investments through internal resources, external capital, and borrowing partly secured by its holdings in Arm. Last month, SoftBank raised more than $11 billion through the largest junk bond issuance on record, with yields reaching 9.75 percent, reflecting high borrowing costs.
SoftBank has previously attracted substantial financing from Middle Eastern sovereign wealth funds. Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala participated in SoftBank's original $100 billion Vision Fund in 2017. Vision Fund 1 has accumulated approximately $29 billion in investment gains, while Vision Fund 2, which holds the OpenAI investment and is primarily financed by SoftBank, has generated $20.5 billion as of June.
As of June, SoftBank's net asset value stood at ¥72.3 trillion ($456.57 billion), with a loan-to-value ratio of 13 percent, below its normal operating limit of 25 percent. However, a substantial portion of SoftBank's assets is tied to technology companies like Arm and OpenAI, so a decline in their valuations could increase the LTV to uncomfortable levels. Son's investment history includes Alibaba's massive success and WeWork's 2023 bankruptcy, adding uncertainty to the current strategy.