SoftBank reportedly weighs $100 billion valuation for new AI and robotics unit in potential U.S. IPO

SoftBank Group is gearing up to launch and possibly list a new standalone company dedicated to artificial intelligence and robotics in the U.S. as soon as this year, according to a report by the Financial Times on Thursday. The proposed entity, named "Roze," is set to focus on constructing data centers and leveraging robotics to enhance AI infrastructure efficiency. Citing anonymous sources familiar with the project, the report indicates that SoftBank's founder and CEO, Masayoshi Son, is spearheading this initiative. The executives are reportedly targeting a valuation of around $100 billion for Roze, aiming for an initial public offering within the same year. However, the timeline and valuation may be subject to change, with some within SoftBank expressing concerns regarding the ambitious nature of these plans amid geopolitical uncertainties, particularly related to the ongoing conflict in the Middle East. Son's appetite for risk in the AI sector has markedly increased, with SoftBank committing tens of billions of dollars to this field. Nevertheless, investors have voiced apprehensions about how the conglomerate intends to finance such significant investments, especially concerning its support for OpenAI, which has yet to turn a profit. The upcoming IPO could potentially alleviate some financial pressures from major commitments, including over $30 billion pledged to OpenAI. Additionally, Roze is expected to incorporate existing assets in energy, land, and infrastructure from SoftBank's portfolio, along with ABB Robotics, which SoftBank agreed to acquire last year. ABB Robotics stands as a prominent player in the robotics and machine automation sector, and the integration of its technology with AI capabilities is anticipated to be a key focus. SoftBank's representatives have not yet commented on the report. The company's AI ventures have increasingly been oriented toward the U.S., as it positions itself as a leading investor in American AI infrastructure. Earlier this year, SoftBank collaborated with OpenAI, Oracle, and others on the Stargate project, an ambitious plan involving a $500 billion investment to enhance AI data center capacity nationwide. The firm is also rapidly advancing its own data center projects, including a significant initiative in Ohio. In the most recent quarter, SoftBank reported a $2.4 billion gain in its Vision Fund, buoyed by profits from its investment in OpenAI, which helped mitigate losses from other investments. The company's stock dipped by 0.9% on Thursday but has risen more than 18% since the beginning of the year.