SoftBank CEO Projects $5 Trillion Annual AI Infrastructure Need

SoftBank's Bold AI Investment Thesis

SoftBank CEO Masayoshi Son delivered a forceful defense of artificial intelligence investments at the company's annual Tokyo event, directly challenging growing market concerns about overvaluation in the AI sector. Son declared that questioning whether AI represents a bubble is "a foolish question," arguing the technology will fundamentally transform society while generating substantial profits.

The remarks come as financial markets grapple with uncertainty over whether massive capital deployments into AI infrastructure—particularly benefiting companies like Nvidia—will deliver returns commensurate with current valuations and investment levels.

Massive Infrastructure Investment Required

Son outlined an ambitious projection for AI's infrastructure demands, estimating that nearly $5 trillion in annual global investment will be necessary to support the technology's expansion. These funds would flow into data center construction, semiconductor manufacturing capacity, energy systems, and related infrastructure.

The SoftBank founder, who established the company more than 40 years ago and has positioned himself as an early AI advocate, went further by forecasting that AI-related industries will account for approximately 20% of global GDP by 2040—a period he characterized as "the world of superintelligence."

Why It Matters

Son's projections represent one of the most aggressive public forecasts for AI's economic impact from a major technology investor. His $5 trillion annual investment estimate provides a benchmark for infrastructure planning and capital allocation decisions across the technology sector. The 20% GDP figure, if realized, would represent a fundamental restructuring of the global economy—though such long-range predictions carry substantial uncertainty and depend on technological breakthroughs that remain unproven at scale.

SoftBank's AI Positioning

The Japanese conglomerate has backed its CEO's conviction with significant capital commitments. SoftBank reported that fiscal year profits through March reached 5 trillion yen ($32 billion), nearly five times the previous year's results, driven by returns from AI investments.

The company has deployed $34.6 billion into OpenAI and recently divested its Nvidia stake to redirect capital toward AI and data center investments. SoftBank manages its technology portfolio through Vision Funds alongside telecommunications and energy operations.

In a move aligned with Son's infrastructure thesis, SoftBank recently launched a battery business in Japan focused on building next-generation electrical power systems to meet anticipated electricity demand from AI operations.

Son offered pointed criticism of AI skeptics, stating: "Those who refuse to evolve are closing down their world. Those who condemn AI are themselves spitting upward."

These details were first reported by Fortune, with contributions from AP Business Writer Elaine Kurtenbach.