Vision Fund

Performance indicators

2022: Losses of $31.97 billion

The Vision Fund, part of the SoftBank group, at the end of the fiscal year ended March 31, 2023, suffered net losses of 4.31 trillion Japanese yen (approximately $31.97 billion at the exchange rate as of May 11, 2023). For comparison, a year earlier, losses were significantly lower - 2.55 trillion yen. Thus, the loss increased by about 70%. Such data are given in the report published on May 11, 2023.

The activity of the Vision Fund, which is one of the world's largest funds specializing in investments in IT projects, is fraught with a number of difficulties. The current macroeconomic situation, crisis and high inflation rate have a negative impact on the work of the division. SoftBank's total losses related to Vision Fund investments reached 5.28 trillion yen (about $39.25 billion) in 2022, while expenses were estimated at 3.43 trillion yen a year earlier.

SoftBank's total losses related to Vision Fund investment hit ¥5.28 trillion

In general, net losses of the SoftBank group in fiscal 2023 were at the level of 970.14 billion yen (approximately $7.21 billion). A year earlier, the company lost 1.71 trillion yen. The group's annual revenue amounted to 6.57 trillion yen ($48.84 billion), while in fiscal 2022 a result of 6.22 trillion yen was demonstrated.

Challenging times for the SoftBank Vision Fund, as noted by TechCrunch, mean additional difficulties for fund-backed startups, many of which are unprofitable in themselves. According to SoftBank Chief Financial Officer Yoshimitsu Goto, the company is considering several possible options for further developments. At best, the market will begin to recover in 2023, at worst - not earlier than 2024. Against the background of the difficulties that have arisen, the group is forced to go into "protective mode."^[1]

History

2025:20% staff cut amid giant losses

In mid-September 2025, it became known that the SoftBank Vision Fund, owned by the Japanese corporation SoftBank Group, announced a large-scale restructuring, during which the number of personnel will be reduced by 20%. This measure is associated with the redistribution of resources against the background of gigantic losses.

SoftBank Vision Fund was founded in 2017. It is the world's largest investment fund focused on cutting-edge technology, including artificial intelligence and robotics. SoftBank Vision Fund's capital exceeds $100 billion. The fund has invested in companies such as Flipkart, Fungible, Improbable, Kabbage, Nvidia, OneWeb, Opendoor, PolicyBazaar, Revolut, Slack, Uber, Academy and many others.

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Фото: The Independent

As noted, SoftBank Reuters Vision Fund employs more than 300 employees around the world. Thus, as part of the reorganization, about 60 people will be reduced. The fund itself confirmed the information about the layoffs.

We are constantly adjusting the organizational structure to ensure the most effective implementation of a long-term strategy aimed at investing in AI and other breakthrough technologies, a SoftBank Vision Fund spokesman said.

These changes reportedly indicate a change in strategy: instead of broad support for startups, the fund will focus primarily on AI initiatives. In particular, the large-scale Stargate project is mentioned - a joint venture between SoftBank, OpenAI and Oracle for the development of AI infrastructure in the United States. It is assumed that up to $500 billion will be spent on the implementation of this program. SoftBank's comprehensive strategy aims to create an AI ecosystem encompassing specialized chips, data centers and large language models.^[2]

2023

State Fund of Saudi Arabia for the year received a loss of $15.6 billion due to unsuccessful investment in IT

On August 6, 2023, the Saudi Arabia Sovereign Fund Public Investment Fund (PIF) reported total losses of $15.6 billion in 2022. The value of SoftBank Vision Fund investments has plummeted and other tech businesses have been hit by a market downturn and global macroeconomic challenges. Read more here.

Loss of $140 billion from investment in AI projects

The founder and head of the Japanese corporation SoftbankMasayoshi Son (Masayoshi Son) lost more than $140 billion in investments in artificial intelligence technologies. However, he is not going to stop there, as it became known in early July 2023.

According to The Wall Street Journal, in five years (by mid-2023), Son and Vision Fund investment funds included in SoftBank have invested in approximately 400 startups that use AI tools in their work. However, this did not bring any result. According to the officially released indicators, during the fiscal year ended in March 2023, SoftBank's total losses associated with Vision Funds investments reached 5.3 trillion yen (about $37.3 billion at the exchange rate as of July 31, 2023). A year earlier, losses in this area were estimated at 3.2 trillion yen ($22.5 billion).

The founder and head of the Japanese corporation SoftBank Masayoshi Son

What is humanity? It is a primitive precursor to artificial intelligence. We do not invest thoughtlessly, we are focused on one topic - AI, - said Son.

Despite the unsuccessful investments, the head of SoftBank plans to continue to develop the direction of generative AI. The corporation intends to continue investing in startups whose developments are expected to be a commercial success. In addition, SoftBank relies on ARM, which owns a controlling stake, to develop its AI business. In general, the Japanese corporation expects to win in the race of generative AI, which will allow it to "rule the world." Son, whose fortune is estimated at $26.2 billion, believes that AI technologies will help improve the quality of consumer services and, ultimately, will increase the corporation's revenue. Son says he will turn SoftBank into "an investment company for the AI revolution."^[3]

Reduction of 30% of the state

In mid-June 2023, it was reported that SoftBank was starting a new round of layoffs at its Vision Fund investment arm, another step to cut costs in the Japanese conglomerate.

The layoffs will affect up to 30% of the unit's staff, including employees in the United States, according to Reuters. According to the company's statements, the headcount of the SoftBank Vision Fund unit, which suffered large investment losses, was 349 at the end of March 2023. The personnel purge in the Vision Fund is held against the background of large losses of the fund.

SoftBank cuts 30% of loss-making fund investing billions in IT startups

The move by SoftBank is part of the Japanese conglomerate's latest cost-cutting efforts to improve the position of its investment arm, which has suffered big losses. The layoffs could be announced in early July 2023.

The new layoffs follow the liquidation of about 150 jobs worldwide in the investment arm and SoftBank Group International as early as September 2023. SoftBank shares rose 5% in morning trading on June 13, 2023, following the reported layoffs.

Overall, the layoffs at SoftBank's Vision Fund division are part of the conglomerate's cost-cutting strategy to improve the struggling investment unit. SoftBank is sticking to the balance between defense and attack, hinting at potential future investments, according to Reuters. Meanwhile, Arm's upcoming listing on the U.S. stock market could benefit the company's balance sheet through cash injections.^[4]

2022:30% staff cut amid giant losses

On September 30, 2022, it became known that the Vision Fund, SoftBank's venture capital arm, had begun a massive process of layoffs, cutting at least 30% of its staff worldwide. At least 150 people will be fired.

Among those cut are employees USA from Tom Cheung, who led the fund's investment in smart window maker View, and Raman Nanda, a longtime climate technology executive at SB Energy, the sources said. The headquarters of the Vision Fund division, located in, London consisted of about 500 employees, including foundation staff in Latin America.

Softbank venture fund cuts 30% of staff amid giant losses

SoftBank representatives declined to comment.

Masayosha Son, the group's billionaire founder, said in August 2022 that he would conduct spending cuts at his conglomerate and investment arm, Vision Fund, after a record $23 billion loss. Most of the losses were caused by a sharp drop in the value of portfolio companies, including South Korean Coupang and DoorDash. SoftBank also reported a loss of $6 billion from the exchange rate difference due to the weakening yen.

Most of SoftBank's record losses - about $17.3 billion - stem from the Vision Fund, which has backed more than 470 startups worldwide over the past six years. Son also said during SoftBank's August 2022 earnings report that some unicorn founders do not want to settle for lower amounts under the new funding. In an earnings call, the Japanese tech company said it cut 284 of its portfolios, including listed corporations and private startups, in the third quarter of 2022.

The Japanese entrepreneur said that he will take protective measures to cope with the protracted decline in technology. In August 2022, SoftBank said it raised more than $17 billion through the sale of forward contracts for Alibaba, a Chinese e-commerce company.^[5][6]

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