SoftBank Eyeing Investments In Indian Data Centres And Robotics To Boost AI Bets

Japanese conglomerate SoftBank is considering investments in Indian data centre and industrial robotics companies, as it looks to boost its focus on the infrastructure layer of artificial intelligence (AI).

SoftBank is evaluating potential deals in these sectors and may invest between $75 Mn and $150 Mn per deal if discussions are successful, Moneycontrol reported.

Although specifics about the potential investments remain unclear, these investments could involve greenfield data centre projects by a large corporation or a manufacturing unit utilising automation and AI.

As of March 2024 end, SoftBank has committed $5 Bn investments in high-growth industries such as logistics, robotics and autonomous driving. Recent investments include Green Box, a joint venture with robotics company Symbotic, which opened its first automated warehouse in California, and a funding round exceeding $1 Bn in Wayve, an autonomous driving company.

The conglomerate made investments and commitments totalling approximately $9 Bn in AI-related companies during FY24.

This comes close on the heels of SoftBank reportedly preparing to resume investments in Indian startups after a period of inactivity. The conglomerate is expected to start signing deals with Indian startups shortly.

SoftBank, which typically invests over $100 Mn per round, will continue this strategy, focusing particularly on growth-stage investments.

According to a presentation from the Japanese investor during its earnings release, the fair value of SoftBank India’s investment portfolio across Vision Fund I and II stood at nearly $14 Bn, an increase of 9% as of December 2023.

SoftBank turned profitable for the first time in five quarters with a net profit of over $6 Bn for the three months ended December, aided by a stock rally in listed firms from Vision Fund I. The investor made a full exit from Zomato and Policybazaar last year.