SoftBank's Masayoshi Son predicts AI will need $5 trillion yearly by 2040, dismisses bubble talk

SoftBank's Son says AI will need $5 trillion per year by 2040, dismisses bubble talk

TOKYO, July 14 (Reuters) - The development of AI will require investment of $5 trillion each year by 2040, and any talk of a bubble forming around the technology is "absurd", SoftBank Group (9984.T), opens new tab CEO Masayoshi Son said on Tuesday. Over the past two years, the technology investment group has embarked on an expansive investment programme to establish itself as a core AI platform, putting tens of billions into OpenAI, financing data centres and investing in robotics firms. "Every year $5 trillion, or 800 trillion yen, you might think that's a lie, but I am confident that's what it will cost," Son said ⁠at SoftBank's annual corporate conference in Tokyo. "The business model will be viable because by 2040, if AI revenue makes up 20% of global GDP, spending 800 trillion yen a year is a rounding error," Son said. He did not say how he came up with the $5 trillion number or the proportion of global GDP he expects AI will make up. Son made his name and fortune through big bets on transformational technologies and is known for enthusiastic speeches touting their promise. AI firms have soared in value while capital expenditure to secure the underlying infrastructure has ballooned, sparking concern over whether these firms will generate sufficient return on their investments. "Asking if AI is a bubble is absurd. I don't think people who ask that question know ⁠what AI is about," he said, reiterating his position on the matter. While Son scored major wins with an early investment in Chinese e-commerce firm Alibaba (9988.HK), opens new tab and bringing Apple Inc's (AAPL.O), opens new tab iPhone to the Japanese mobile phone market, others, like bankrupt shared-office provider WeWork, failed to live up to the hype. Presently SoftBank's highest-conviction wager is on ChatGPT-maker OpenAI, in which its cumulative investment is set to exceed $60 billion before 2026 ⁠ends. To power AI, Son predicted AI data centres will need power generation of 3 terawatts by 2040, equal to 1.8 times total current global power consumption. This will initially be powered primarily by gas before nuclear fusion becomes the main energy source, Son said. "Will we use solar ⁠power in space as Elon Musk says? Maybe we will use both, but if you ask me fusion on earth will be the cheaper, cleaner energy source," he said. Son outlined his vision of society in 2040 where 100 trillion AI ⁠agents make their own decisions, take action and communicate with other agents. "We will go from a human-centric world to an agent-centric world. The age when humans are the highest life form on earth will end. For better or for worse, it will happen and it can't be stopped," Son said. Reporting by Anton Bridge; Editing by Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles., opens new tab

SoftBank Group's CEO says $5 trillion a year needed globally to meet AI demand

TOKYO (AP) -- Worries about a bubble in artificial intelligence investments are absurd, SoftBank Group's CEO Masayoshi Son said Tuesday, deriding such doubts as backward and akin to questioning the use of cars and planes. "To ask whether AI is a bubble is a foolish question," Son told executives at an annual company event in Tokyo. "AI will transform our lives completely, and do so in a way that generates profits." "Those who refuse to evolve are closing down their world. Those who condemn AI are themselves spitting upward," Son added. Son founded SoftBank more than four decades ago and is a pioneer in Japan's technology investments. He was an early supporter of AI and has invested tens of billions of dollars in related companies. Son said he estimates that almost $5 trillion in investments will be needed annually and globally to expand data centers, increase production of computer chips and provide energy systems and other infrastructure for AI. "In 2040, approximately 20% of the world's GDP will be replaced by AI-related industries, the world of superintelligence," he said. SoftBank oversees a sprawling collection of businesses through what it calls Vision Funds. Its other businesses include telecommunications and energy. Tokyo-based SoftBank Group Corp. earlier reported its profits for the fiscal year through March soared nearly five-fold to 5 trillion yen ($32 billion) from a year earlier as its AI investments paid off. The tech giant has invested $34.6 billion in OpenAI. It sold its stake in computer chip maker Nvidia last year to free up funds for more investments in AI and data centers. SoftBank recently started a battery business in Japan to build next-generation electric power infrastructure in anticipation of growing electricity demand driven by AI use. ___ AP Business Writer Elaine Kurtenbach in Bangkok contributed.

Masayoshi Son says AI will cost $5tn a year by 2040, and calls bubble talk absurd

At SoftBank's annual conference in Tokyo, Masayoshi Son put a very large number on the AI build-out and declined to show his working. "Every year $5 trillion, or 800 trillion yen, you might think that's a lie, but I am confident that's what it will cost." That was Masayoshi Son on Tuesday, at SoftBank's annual corporate conference in Tokyo, telling the room what building artificial intelligence will require each year by 2040. Yet, he did not say how he arrived at the figure. The justification he offered was ratio rather than arithmetic. "The business model will be viable because by 2040, if AI revenue makes up 20% of global GDP, spending 800 trillion yen a year is a rounding error," he said, a sentence that quietly does all its work in the first four words. On the question that follows him everywhere now, he was blunt. "Asking if AI is a bubble is absurd. I don't think people who ask that question know what AI is about." This is a familiar register. Son has previously called the same question blasphemy, and told shareholders at the group's June annual meeting that it amounted to an insult. The escalation is in the adjectives, not the argument. What sits underneath the rhetoric is a balance sheet with unusual concentration. SoftBank's cumulative investment in OpenAI is set to exceed $60bn before the end of 2026, funded in part by a $40bn bridge loan syndicated across a group of banks. The spending has been going on for two years already. SoftBank has poured tens of billions into OpenAI, financed data centres, and bought into robotics companies, an expansive programme whose stated aim is to turn the group itself into a core platform of the AI era rather than merely an investor in one. Son's record is the reason people still turn up. He backed Alibaba early and brought the iPhone to Japan's mobile market, and he also put SoftBank's money and reputation behind WeWork, which went bankrupt. The energy forecast was the part of Tuesday's speech that will be hardest to quietly forget. Son predicted AI data centres will need three terawatts of generation by 2040, which he put at 1.8 times total current global power consumption, initially met by gas before nuclear fusion takes over. Fusion is not yet a commercial power source anywhere on earth. Son's position is that it will be the cheaper and cleaner one when it arrives. He was asked, in effect, about the alternative. "Will we use solar power in space as Elon Musk says? Maybe we will use both, but if you ask me fusion on earth will be the cheaper, cleaner energy source," he said, having already dismissed orbital data centres as a bet on the race rather than a solution to it. Then he went further out. By 2040, Son said, 100 trillion AI agents will make their own decisions, act on them, and communicate with each other without a person in the loop. "We will go from a human-centric world to an agent-centric world," he said. "The age when humans are the highest life form on earth will end. For better or for worse, it will happen and it can't be stopped." None of the three predictions, the money, the power, and the agents, came with a model attached. They came with conviction, which in Son's case has historically been the point. The market that has to price all this is more equivocal. AI companies have soared in value while the capital expenditure needed to feed them has ballooned, and the open question, the one Son calls absurd, is whether the returns will ever cover the spend. SoftBank itself is a live experiment in that question. The group briefly overtook Toyota as Japan's most valuable listed company earlier this year, a position it last held in February 2000, shortly before its shares fell roughly 90%. Son is 68 and has asked for another decade to see the thesis through. The $5tn figure, unshown working and all, is now on the record for anyone who wants to check it in 2040.

SoftBank CEO Says You're Too Stupid to Understand What's Going on If You Believe the AI Bubble Is Real

Can't-miss innovations from the bleeding edge of science and tech With hundreds of billions of dollars still flowing into the tech industry, it's becoming harder and harder to deny the reality that the US economy is enmeshed in a financial bubble of incredible proportions. As recent polls have shown, the majority of Americans don't only agree that there is an AI bubble, they're increasingly concerned about it as well. One man who isn't swayed is Japan's richest investment mogul, SoftBank CEO Masayoshi Son. Speaking at his company's annual corporate conference in Tokyo, Son groused that any talk of an AI bubble is "absurd," adding that he's willing to waste trillions of dollars a year for decades if that's what it takes to make AI a financial success. "Asking if AI is a bubble is absurd. I don't think people who ask that question know ⁠what AI is about," Son said to conference attendees, as Reuters reported. "Every year $5 trillion, or 800 trillion yen, you might think that's a lie, but I am confident that's what it will cost." Son has previously said he thinks it's "blasphemy against AI if you say it's a bubble," claiming that the tech's "potential will be unlocked." But whether the tech industry can ever make AI financially viable is a particularly sensitive issue for SoftBank. The investment bank has lavished ChatGPT maker OpenAI with nearly $65 billion so-far, a spend so enormous that it forced major credit ratings agencies to downgrade SoftBank's standing over the last few months. As S&P Global's analysts wrote when they downgraded SoftBank's outlook from "neutral" to "negative" in March, the "liquidity of SoftBank Group's investment portfolio will worsen because OpenAI now accounts for a bigger share of it." In particular, S&P warned against the exact path CEO Son seems to be doubling down on. "The additional investment will further reduce SoftBank Group's financial capacity, in our view," S&P's credit report explained. "We estimate that the additional investment in OpenAI will knock nearly four percentage points onto the company's [loan-to-value] ratio, worsening this key financial metric." These invectives evidently haven't spooked Son, who once predicted that AI superintelligence would exist by 2035. Now, he's adding five years to that prediction: "The business model will be viable because by 2040," Son said, "if AI revenue makes up 20 percent of global GDP, spending 800 trillion yen a year is a rounding error."

'Those who condemn AI are themselves spitting upward': SoftBank's CEO estimates $5 trillion needed annually to meet AI demand | Fortune

"To ask whether AI is a bubble is a foolish question," Son told executives at an annual company event in Tokyo. "AI will transform our lives completely, and do so in a way that generates profits." "Those who refuse to evolve are closing down their world. Those who condemn AI are themselves spitting upward," Son added. Financial markets have recently been swept by waves of concern that the meteoric rise in share prices of companies like Nvidia, and massive investments in data centers, might not yield returns that match hopes for huge profits from AI. Son founded SoftBank more than four decades ago and is a pioneer in Japan's technology investments. He was an early supporter of AI and has invested tens of billions of dollars in related companies. Son said he estimates that almost $5 trillion in investments will be needed annually and globally to expand data centers, increase production of computer chips and provide energy systems and other infrastructure for AI. "In 2040, approximately 20% of the world's GDP will be replaced by AI-related industries, the world of superintelligence," he said. SoftBank oversees a sprawling collection of businesses through what it calls Vision Funds. Its other businesses include telecommunications and energy. Tokyo-based SoftBank Group Corp. earlier reported its profits for the fiscal year through March soared nearly five-fold to 5 trillion yen ($32 billion) from a year earlier as its AI investments paid off. The tech giant has invested $34.6 billion in OpenAI. It sold its stake in computer chip maker Nvidia last year to free up funds for more investments in AI and data centers. SoftBank recently started a battery business in Japan to build next-generation electric power infrastructure in anticipation of growing electricity demand driven by AI use. ___ AP Business Writer Elaine Kurtenbach in Bangkok contributed.

SoftBank Group's CEO Says $5 Trillion a Year Needed Globally to Meet AI Demand

TOKYO (AP) -- Worries about a bubble in artificial intelligence investments are absurd, SoftBank Group's CEO Masayoshi Son said Tuesday, deriding such doubts as backward and akin to questioning the use of cars and planes. "To ask whether AI is a bubble is a foolish question," Son told executives at an annual company event in Tokyo. "AI will transform our lives completely, and do so in a way that generates profits." "Those who refuse to evolve are closing down their world. Those who condemn AI are themselves spitting upward," Son added. Financial markets have recently been swept by waves of concern that the meteoric rise in share prices of companies like Nvidia, and massive investments in data centers, might not yield returns that match hopes for huge profits from AI. Son founded SoftBank more than four decades ago and is a pioneer in Japan's technology investments. He was an early supporter of AI and has invested tens of billions of dollars in related companies. Son said he estimates that almost $5 trillion in investments will be needed annually and globally to expand data centers, increase production of computer chips and provide energy systems and other infrastructure for AI. "In 2040, approximately 20% of the world's GDP will be replaced by AI-related industries, the world of superintelligence," he said. SoftBank oversees a sprawling collection of businesses through what it calls Vision Funds. Its other businesses include telecommunications and energy. Tokyo-based SoftBank Group Corp. earlier reported its profits for the fiscal year through March soared nearly five-fold to 5 trillion yen ($32 billion) from a year earlier as its AI investments paid off. The tech giant has invested $34.6 billion in OpenAI. It sold its stake in computer chip maker Nvidia last year to free up funds for more investments in AI and data centers. SoftBank recently started a battery business in Japan to build next-generation electric power infrastructure in anticipation of growing electricity demand driven by AI use. ___ AP Business Writer Elaine Kurtenbach in Bangkok contributed.

SoftBank AI investment: SoftBank's Masayoshi Son says AI will need $5 trillion per year by 2040, dismisses bubble talk

"The business model will be viable because by 2040, if AI revenue makes up 20% of global GDP, spending 800 trillion yen a year is a rounding error," Son said. The development of AI will require investment of $5 trillion each year by 2040, and any talk of a bubble forming around the technology is "absurd", SoftBank Group CEO Masayoshi Son said on Tuesday. Over the past two years, the technology investment group has embarked on an expansive investment programme to establish itself as a core AI platform, putting tens of billions into OpenAI, financing data centres and investing in robotics firms. "Every year $5 trillion, or 800 ⁠trillion yen, ⁠you might think that's a lie, but I am confident that's what it will cost," Son said at SoftBank's annual corporate conference in Tokyo. "The business model will be viable because by 2040, if AI revenue makes up 20% of global GDP, spending 800 trillion yen a year is a rounding error," Son said. He did not say how he came up with the $5 trillion number or the proportion of global GDP he expects AI will make up. Son made his name and fortune through big bets ⁠on transformational technologies and is known for enthusiastic speeches touting their promise. AI firms have soared in value while capital expenditure to secure the underlying infrastructure has ballooned, sparking concern over ⁠whether these firms will generate sufficient return on their investments. "Asking if AI is a bubble is absurd. I don't think people who ask that question know what AI is about," he said, reiterating his position on the matter. While Son scored major wins with an early investment in Chinese e-commerce firm Alibaba and bringing Apple Inc's iPhone to the Japanese mobile phone market, others, like bankrupt shared-office provider WeWork, failed to live up to the hype. Presently SoftBank's highest-conviction wager is on ChatGPT-maker OpenAI, in which its cumulative investment is set to exceed $60 billion before 2026 ends. To power AI, Son predicted AI data centres will need power generation of 3 terawatts by 2040, equal to 1.8 times total current global power consumption. This will initially be powered ⁠primarily by gas before nuclear fusion becomes the main energy source, Son said. "Will we use solar power in space as Elon Musk says? Maybe we will use both, but if you ask me fusion on earth will be the cheaper, cleaner energy source," he said. Son outlined his vision of society in 2040 where 100 trillion AI agents make their own decisions, take action and communicate with other agents. "We will go from a human-centric world to an agent-centric world. The age when humans are the highest life form on earth will end. For better or for worse, it will happen and it can't be stopped," Son said.

Masayoshi Son Predicts AI Will Replace Roughly 20% of Global GDP By 2040 as He Scoffs at Bubble Warnings:

SoftBank Group's (OTC: SFTBY) CEO, Masayoshi Son, brushed aside concerns about a potential bubble in artificial intelligence (AI) investments. He labelled such fears as "foolish" and "backward". Son made these remarks at an annual company event in Tokyo, as reported by Japan Today on Wednesday. He has been a fervent supporter of AI and has invested billions into AI-related companies, asserting that AI will revolutionize our lives while generating profits. Son anticipates that by 2040, roughly 20% of the world's GDP will be replaced by AI-related industries. "Those who refuse to evolve are closing down their world. Those who condemn AI are themselves spitting upward," he added. Son Sees AI Dip as Buying Opportunity In earlier conversations, Son identified humanoid and industrial robotics, "with physical AI as a core," as the next trillion-dollar business opportunity. He also stated that the ongoing AI revolution is "50x bigger" than the dot-com boom of the 2000s. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

SoftBank Group's CEO says US$5 trillion a year needed globally to meet AI demand

TOKYO -- Worries about a bubble in artificial intelligence investments are absurd, SoftBank Group's CEO Masayoshi Son said Tuesday, deriding such doubts as backward and akin to questioning the use of cars and planes. "To ask whether AI is a bubble is a foolish question," Son told executives at an annual company event in Tokyo. "AI will transform our lives completely, and do so in a way that generates profits." "Those who refuse to evolve are closing down their world. Those who condemn AI are themselves spitting upward," Son added. Financial markets have recently been swept by waves of concern that the meteoric rise in share prices of companies like Nvidia, and massive investments in data centres, might not yield returns that match hopes for huge profits from AI. Son founded SoftBank more than four decades ago and is a pioneer in Japan's technology investments. He was an early supporter of AI and has invested tens of billions of dollars in related companies. Son said he estimates that almost US$5 trillion in investments will be needed annually and globally to expand data centers, increase production of computer chips and provide energy systems and other infrastructure for AI. "In 2040, approximately 20% of the world's GDP will be replaced by AI-related industries, the world of superintelligence," he said. SoftBank oversees a sprawling collection of businesses through what it calls Vision Funds. Its other businesses include telecommunications and energy. Tokyo-based SoftBank Group Corp. earlier reported its profits for the fiscal year through March soared nearly five-fold to 5 trillion yen ($32 billion) from a year earlier as its AI investments paid off. The tech giant has invested $34.6 billion in OpenAI. It sold its stake in computer chip maker Nvidia last year to free up funds for more investments in AI and data centers. SoftBank recently started a battery business in Japan to build next-generation electric power infrastructure in anticipation of growing electricity demand driven by AI use. ___ AP Business Writer Elaine Kurtenbach in Bangkok contributed.

Masayoshi Son lays out AI forecast: $5 trillion a year by 2040

News Masayoshi Son lays out AI forecast: $5 trillion a year by 2040 He ties the spending boom to AI reaching 20% of GDP At SoftBank World, SoftBank Group founder and CEO Masayoshi Son laid out an enormous AI bet: by 2040, he thinks the world could be spending about $5 trillion a year on AI buildout, or roughly 800 trillion yen annually. Son's case was simple enough. If AI revenue reaches 20% of global GDP by 2040, that level of spending starts to look defensible. You can already see where SoftBank is heading. The company has been building toward an AI platform that spans chips, robotics, data centers, and large-scale computing. Its investment in OpenAI is expected to top $60 billion before the end of 2026, with part of that backed by a $40 billion bridge loan. Son also waved off bubble concerns at SoftBank World, calling them "absurd," even as U.S. tech companies and governments from India to the EU prepare their own massive infrastructure spending. He also went deep on the power question. Son said AI data centers may need 3 terawatts by 2040, about 1.8 times current global electricity consumption, with gas doing the early work and fusion coming later. Data centers already consume huge amounts of electricity and water, and some estimates put them at nearly 3% of projected global electricity use by 2030. Then came the bigger societal claim. Son said you could see 100 trillion autonomous agents by 2040, moving society from "human-centric" to "agent-centric." Maybe that timeline lands, maybe it doesn't. But if you pay attention to AI infrastructure, this is the kind of forecast you watch closely. That was the message coming out of SoftBank World.

SoftBank's Son says AI will need $5 trillion per year by 2040, dismisses bubble talk

TOKYO, July 14 (Reuters) - The development of AI will require investment of $5 trillion each year by 2040, and any talk of a bubble forming around the technology is "absurd", SoftBank Group CEO Masayoshi Son said on Tuesday. Over the past two years, the technology investment group has embarked on an expansive investment programme to establish itself as a core AI platform, putting tens of billions into OpenAI, financing data centres and investing in robotics firms. "Every year $5 trillion, or 800 trillion yen, you might think that's a lie, but I am confident that's what it will cost," Son said at SoftBank's annual corporate conference in Tokyo. "The business model will be viable because by 2040, if AI revenue makes up 20% of global GDP, spending 800 trillion yen a year is a rounding error," Son said. He did not say how he came up with the $5 trillion number or the proportion of global GDP he expects AI will make up. Son made his name and fortune through big bets on transformational technologies and is known for enthusiastic speeches touting their promise. AI firms have soared in value while capital expenditure to secure the underlying infrastructure has ballooned, sparking concern over whether these firms will generate sufficient return on their investments. "Asking if AI is a bubble is absurd. I don't think people who ask that question know what AI is about," he said, reiterating his position on the matter. While Son scored major wins with an early investment in Chinese e-commerce firm Alibaba and bringing Apple Inc's iPhone to the Japanese mobile phone market, others, like bankrupt shared-office provider WeWork, failed to live up to the hype. Presently SoftBank's highest-conviction wager is on ChatGPT-maker OpenAI, in which its cumulative investment is set to exceed $60 billion before 2026 ends. To power AI, Son predicted AI data centres will need power generation of 3 terawatts by 2040, equal to 1.8 times total current global power consumption. This will initially be powered primarily by gas before nuclear fusion becomes the main energy source, Son said. "Will we use solar power in space as Elon Musk says? Maybe we will use both, but if you ask me fusion on earth will be the cheaper, cleaner energy source," he said. Son outlined his vision of society in 2040 where 100 trillion AI agents make their own decisions, take action and communicate with other agents. "We will go from a human-centric world to an agent-centric world. The age when humans are the highest life form on earth will end. For better or for worse, it will happen and it can't be stopped," Son said. (Reporting by Anton Bridge; Editing by Muralikumar Anantharaman)