STARTUP-STORIES

SoftBank Eyes Indian Data Centers and Robotics for AI Push

SUMMARY

SoftBank, a major investor in AI, is looking to invest in Indian data centers and industrial robotics companies. This focus on infrastructure strengthens the foundation for AI development in India. Potential deals range from $75 million to $150 million each and could involve building new data centers or implementing AI automation in factories.

SoftBank is resuming investments in Indian startups after a break, focusing on growth-stage ventures exceeding $100 million per round. Their existing portfolio in India, managed through Vision Funds, has shown positive performance with a 9% growth in fair value to nearly $14 billion as of December 2023. This renewed interest and past success suggest continued investment in India's AI future.

SoftBank, the Japanese investment giant, is setting its sights on India's growing potential in artificial intelligence (AI). Here's a breakdown of their investment strategy and target sectors:

Focus on AI Infrastructure:

SoftBank is actively evaluating potential investments in Indian data centers and industrial robotics companies.
This aligns with their broader goal of strengthening the foundational infrastructure for AI development and deployment.

Investment Range and Deal Types:

SoftBank is considering deals ranging from $75 million to $150 million each.
Potential investments could involve greenfield data center projects (newly built) or AI-powered automation solutions in manufacturing units.

Track Record in AI Investments:

As of March 2024, SoftBank has committed $5 billion to high-growth industries like robotics, logistics, and autonomous vehicles.
Recent examples include Green Box (automated warehouse) and Wayve (autonomous driving).
In FY24 alone, SoftBank's total commitment to AI-related companies reached nearly $9 billion.

Resuming Interest in Indian Startups:

This focus on Indian data centers and robotics comes amid reports of SoftBank resuming investments in Indian startups after a period of inactivity.
They are expected to prioritize growth-stage investments exceeding $100 million per round.

Strong Performance in Existing Indian Portfolio:

SoftBank's existing investments in India, through Vision Fund I and II, have shown positive results.
As of December 2023, the fair value of their Indian portfolio stood at nearly $14 billion, reflecting a 9% growth.
Their recent profitability also highlights the potential success of further Indian ventures.