Softbank Group of Japan (9984.T) announced on Friday the establishment of Vision Fund II to invest in technology companies, saying it had won a memorandum of understanding for $108 billion in investments from companies such as Apple (AAPL.O) and Microsoft (MSFT.O).
Softbank said in a statement that it planned to invest $38 billion in the fund itself. Other companies expected to join include Taiwan Hon Hai Precision (2317.TW), Mitsubishi UFG (8306.T), Mitsui Sumitomo Financial Group (8316.T) and Mizuho (8411.T), the subsidiaries of Japan's three largest banks.
Investors in Vision II are more diversified, unlike a $100 billion external fund, most of which come from oil-producing countries in the Middle East, and Softbank says the fund's return is higher than the industry level.
"Those who invested two years ago were investing in the vision, and there is no evidence that the concept will succeed," said Chris Lane, an analyst at Sanford C. Bernstein.
"Given the achievements of the past two years, the risk of Vision Fund 2 has been greatly reduced." He said.
Other investors in the fund include the State Investment Corporation of the Central Bank of Kazakhstan, Standard Chartered Bank (STAN.L) and Taiwanese investors who are not publicly identified.
"The goal of the fund is to promote the sustained acceleration of the AI revolution by investing in technological growth enterprises that lead the market." Softbank said in the statement.
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