Masayoshi Son has claimed the title of the wealthiest individual in Asia, surpassing Indian billionaire Mukesh Ambani, following a significant rise in SoftBank’s share prices that has propelled his net worth to $97 billion.
According to Forbes, Son, who is the head of SoftBank Group, has benefited from the current surge in artificial intelligence investments. The company’s stock, which is listed in Tokyo, reached a historic peak on Monday, making SoftBank the most valuable corporation in Japan by market capitalization, ahead of the automobile giant Toyota.
At 68 years old, Son’s wealth is primarily linked to his holdings in SoftBank, enabling him to surpass Ambani, the chairman of Reliance Industries, whose wealth is estimated at $90 billion, as reported by Forbes’ Real-Time Billionaires List.
SoftBank’s market capitalization now stands at approximately $298 billion, with its shares experiencing an increase of over 80% this year, driven by enthusiasm surrounding Son’s investments in AI. In a recent interview with CNBC, he remarked that the ongoing AI revolution could present opportunities 50 times larger than those seen during the dot-com boom.
“I believe this is more than ten times, probably fifty times, the scale of the dot-com era,” Son stated. Just the day before, he had revealed plans for an investment of up to €75 billion (around $87 billion) in AI infrastructure, including data centers in France.
As demand for AI continues to rise, portfolio companies under SoftBank are also experiencing significant growth, contributing to the increase in the parent company’s stock price. A key driver of this upward trend is Arm Holdings, a chip manufacturer listed on Nasdaq, in which SoftBank holds nearly a 90% stake, according to Dan Baker, a senior equity analyst at Morningstar.
The British company has seen its shares rise by more than 250% this year and announced on Tuesday that it may reach its $15 billion chip sales target ahead of schedule. In March, Arm introduced its first in-house chip, marking a strategic shift from merely licensing chip-making technologies, and projected that it would sell this volume of self-produced chips within five years, with total annual revenues expected to hit $25 billion by then—a more than six-fold increase from its earnings in 2025.
Additionally, investors are optimistic about the future valuation of OpenAI, the creator of ChatGPT, in which SoftBank has invested more than $30 billion. Under the leadership of billionaire Sam Altman, OpenAI was valued at $852 billion in late March after securing $122 billion in funding from prominent investors, including Amazon and Nvidia.
The American AI leader is now in competition with its rapidly growing rival Anthropic, as both companies aim for a public offering to attract further investment. SoftBank has pledged an additional $20 billion for OpenAI by October, potentially reaping rewards if the company’s valuation continues to rise. Analysts predict that OpenAI could be valued at around $1 trillion upon going public, in light of the excitement surrounding large-scale listings, such as Elon Musk’s SpaceX, which is reportedly seeking $75 billion.
Despite his significant investments in AI, Son has maintained a disciplined approach to finances. According to a May research note from Morningstar, SoftBank’s leverage ratio, measured by loans compared to asset value, has decreased from 18% to 17% during the fiscal fourth quarter. The company has set a self-imposed leverage ceiling of 25%, having faced substantial market scrutiny due to its previous high borrowing levels.
Nevertheless, Deutsche Bank analyst Peter Milliken warned in a Tuesday report that challenges lie ahead. He noted that OpenAI is facing tough competition from Anthropic, which has recently surpassed it with a valuation of $965 billion following a funding round in May. Furthermore, the rise of more affordable, open-source AI models globally could impact OpenAI’s sales growth.
“SoftBank has enjoyed a remarkable trajectory, driven primarily by astute investing and partially by a market that shows signs of entering a mania,” Milliken commented. “It appears that analysts and investors have become overly focused on short-term gains, often neglecting to consider long-term growth trajectories with detailed assumptions.”
