SoftBank, the Japanese technology conglomerate, is considering investments in Indian data centre and industrial robotics companies as part of its strategy to capitalise on the infrastructure layer of artificial intelligence (AI). Sources reveal that SoftBank is evaluating potential deals in these sectors and may invest between $75 million and $150 million per deal once discussions come to fruition.

Sources revealed that SoftBank is focusing on AI use cases with significant market potential, with data centres and industrial robotics being the two key themes they are currently pursuing in India. While specific details of the potential investments remain undisclosed, one source suggests that these could involve greenfield data centre businesses of a large corporation or a manufacturing unit leveraging automation and AI.

Renewed Interest in Indian Investments

SoftBank’s potential AI-related investments in India would mark the end of a two-year hiatus in the conglomerate’s deal-making activities in the country. Between late 2018 and mid-2022, SoftBank invested approximately $11 billion in Indian startups and has reported exits worth around $6.5 billion from those investments. The company’s move to explore AI infrastructure companies in India underscores a growing global sentiment of viewing India as an exporter of technology rather than just a large market for capture.

As SoftBank continues to evaluate potential deals in the Indian data centre and industrial robotics sectors, the technology landscape in the country is poised for significant growth and innovation driven by the increasing adoption of artificial intelligence.

Alignment with SoftBank’s Global AI and Chip Strategy

SoftBank’s interest in India’s AI infrastructure aligns with its global shift towards AI and chips, even as the mega investor accelerates its exit from Vision Fund holdings in areas such as e-commerce and fintech. In the fiscal year 2024, SoftBank committed around $9 billion in investments focused on high-growth industries, including logistics, robotics, and autonomous driving.

In October 2023, SoftBank CEO Masayoshi Son expressed his belief that artificial general intelligence (AGI), with a capacity ten times the sum total of human intelligence, will be developed within the next decade. He also introduced the concept of Artificial Super Intelligence, which he claimed would be 10,000 times more powerful than human intelligence and become a reality within the next 20 years.

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