Betting $87 billion on European AI, Masayoshi Son: This revolution is 50 times bigger than the internet era!

SoftBank Group CEO Masayoshi Son has once again made a bold declaration of his unwavering bet on artificial intelligence. The Japanese tech investment giant announced an investment of 75 billion euros (about $87 billion) in building AI infrastructure in France and asserted that the current AI revolution is 50 times larger than the internet bubble era, and will become the greatest technological transformation in human history.

According to CNBC, Son said in an interview in Paris on Monday, "I think this is 10 times bigger than the internet era, maybe even 50 times." This statement came the day after SoftBank unveiled its investment plan in France, where it will build a total of 5 gigawatts of AI data center capacity in northern France, marking SoftBank’s largest AI infrastructure investment in Europe. Following the announcement, SoftBank's Tokyo-listed shares rose 14% that day.

Son also anticipated possible market volatility in the AI sector, stating that short-term adjustments are inevitable, but they will be "the best investment opportunity." He also revealed that SoftBank will mainly rely on project financing rather than its own capital to advance this investment, and expressed optimism about OpenAI's IPO prospects.

France becomes the core of European AI layout

The scale of SoftBank’s investment plan in France is enormous, with plans to build 3.1 gigawatts of AI data centers in the Hauts-de-France region of northern France before 2031, covering locations including Dunkirk, Bosquel, and Bouchain, with a total investment of 75 billion euros.

At a press conference with French President Emmanuel Macron, Son said, "This is a huge investment. We've already advanced similar projects in the U.S. and are continuously expanding. We have the capability to make France the center of Europe, and Europe needs this kind of AI technology."

In terms of partnerships, SoftBank will work with French engineering company Schneider Electric to establish a large industrial production center in Dunkirk, as a key part of the overall plan.

Project financing dominates, limited use of own capital

Despite the eye-catching investment scale, Son emphasized that SoftBank does not need to use much of its own funds. He said that the French project will mainly rely on project financing, citing SoftBank’s 10 gigawatt project in Ohio— which is about to sign long-term power purchase agreements with customers— as an example.

"The amount of money we need to invest ourselves is very, very little," Son said, "I am confident we will get large procurement orders from existing customers, and we can extend this momentum to France."

This financing strategy means SoftBank can leverage infrastructure investments far greater than its own capital without heavily consuming its balance sheet.

Learning from history, confidence in AI’s long-term value

Facing concerns about an AI bubble, Son responded by referencing history. He pointed out that during the Wall Street crash of 1929, automobile and electronics stocks suffered heavy losses, but continued to climb over the following century. "There’s always adjustments in history," he said, "But if you look back, electronics and automotive crashed in 1929, but then rose for many, many years ... So there may be some adjustments, but for me, that’s the best investment opportunity."

He also characterized the bursting of the internet bubble as "a little bump" in a long-term growth narrative, and emphasized that AI is "the greatest technological revolution and cognitive leap ever experienced by humanity— this is just the beginning of the internet era."

OpenAI’s position exceeds 20%, Son unconcerned about concentration risk

At the portfolio level, Son responded to external doubts about SoftBank’s over-commitment to OpenAI. He said OpenAI accounts for just over 20% of SoftBank Group’s net asset value, while UK chip design company Arm is SoftBank’s largest position, accounting for more than 50% of net asset value.

Previously, SoftBank has partnered with OpenAI to jointly participate in the Stargate project building AI infrastructure in the U.S. Son holds an optimistic outlook for OpenAI’s prospects, stating that the company "will be very successful," as OpenAI is reportedly planning an IPO at this time.

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