Masayoshi Son and Sam Altman See No End to AI Demand and Scaling

At a recent teleconference during SoftBank World, Masayoshi Son, the founder of SoftBank Group Corp., and Sam Altman, CEO of OpenAI, shared their optimistic outlook on the relentless demand for artificial intelligence. They emphasized the necessity to continually expand computing resources to meet this growing need. Both leaders discussed how advanced AI technologies will not only create jobs that we can't even envision yet but will also propel a cycle of self-improvement in robotics. Altman stated, "As we lower the costs associated with AI, the willingness to adopt it skyrockets. If we can make AI ten times cheaper, the demand could increase dramatically. The thirst for intelligence is immense across the globe." Their discussion, aimed at an audience of Japanese business executives, revolved around the concept of self-replicating innovations. Altman introduced the idea of robots capable of constructing other robots, while Son highlighted the potential for AI agents to learn autonomously and subsequently develop new agents to boost efficiency. He expressed his ambition to roll out a billion AI agents within SoftBank this year and is working on a specialized operating system for them. In February, Son had announced a joint venture between SoftBank's telecom division and OpenAI, solidifying his commitment to support the AI initiatives of the company behind ChatGPT. This partnership will produce an enterprise AI solution named Cristal intelligence, aimed at various local industries, from automotive to retail sectors. SoftBank plans to invest $3 billion annually in utilizing OpenAI's tools across its subsidiaries. Son's investment strategy with OpenAI is extensive, with plans for up to $30 billion in funding, dependent on a reorganization of OpenAI's operational framework. Additionally, he collaborated with Altman on the ambitious $500 billion Stargate project, which intends to establish data centers and AI infrastructure throughout the United States. Altman noted the need for innovative technologies and construction methods as they consider scaling beyond 10 gigawatts in energy consumption. However, neither Son nor Altman addressed the potential hurdles related to energy supply for such expansive initiatives or the risks if their growth projections do not materialize as expected. In June, SoftBank's stock experienced a remarkable 38% surge, its best performance in two decades, as investors responded positively to Son's bold vision and aggressive financial strategies. Despite this, the company’s shares still trade below their overall asset value due to concerns stemming from intricate financing arrangements.