SoftBank Stock Rises as CEO Discusses Super Artificial Intelligence Leading to 186 Billion Bond Issuance

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On Friday, June 20, 2024, Masayoshi Son, Chairman and CEO of SoftBank Group Corporation, delivered a speech at the company’s annual shareholders’ meeting in Tokyo, Japan. Son outlined ambitions to help create artificial intelligence that is thousands of times smarter than any human, marking his grandest statement since the Japanese conglomerate began taking measures to support its finances after a series of ill-timed startup bets. Koichiro Okahara | Bloomberg | Getty Images
SoftBank announced on Friday plans to issue euro and dollar-denominated bonds to repay debt and focus investments on artificial intelligence. The massive Japanese holding company stated that it will issue approximately $900 million in dollar-denominated bonds in two tranches and €900 million (worth $9.628 billion) in bonds in two tranches. The loans carry annual interest rates ranging from 5.4% to 7%. SoftBank stated that the funds raised will be used for “repaying debt and general corporate purposes.” Following the news of the bond issuance, its stock price rose 2.5% at the close.
As SoftBank raises funds through debt, its overall financial losses have begun to narrow as it has achieved some successes, including the initial public offering of chip designer Arm. Meanwhile, the company also stated that it is seeking to increase investments in artificial intelligence companies. The company operates a large technology investment division called the Vision Fund. In a rare public appearance earlier this month, SoftBank’s founder and CEO Masayoshi Son discussed a concept he referred to as Artificial Super Intelligence (ASI). He said this refers to artificial intelligence that is 10,000 times smarter than humans, which he expects to exist within 10 years. SoftBank may be hoping to capitalize on improved investor sentiment towards the company, as its stock price has risen 65% year-to-date.