Message from External Board Director—SoftBank Group Report 2025

The AI landscape has changed dramatically since I last contributed to our Annual Report five years ago. OpenAI’s breakthrough advances in generative AI set off a wave of innovation, with new models emerging, including from start-ups in China, further accelerating the pace of progress.

In May 2025, Japan enacted its first comprehensive AI legislation^* under a national policy aimed at making the country the most AI-friendly in the world. I believe the law’s underlying logic, that managing AI risks, such as the spread of misinformation, is not a hindrance but a pathway to innovation, is fundamentally sound. Innovation and risk management in AI are not trade-offs. Rather, by clearly defining rules around privacy, security, transparency, and accountability, we create an environment where AI can be adopted with confidence—ultimately driving innovation and paving the way for broader societal adoption.

In times like these, I believe the real driver of long-term global competitiveness will be a nation’s ability to harness AI-generated intelligence—namely, advanced cognitive processing capabilities. To achieve this, the key will be how effectively foundational resources, such as electricity and semiconductors, can be secured. That’s exactly where global players are heading. While short-term corrections like those seen during the Internet era might occur, the long-term contest will center on who can best acquire and deploy this intelligence.

Amid these developments, we are proactively advancing AI infrastructure development and investments in that quest to realize ASI. Behind our key decisions, such as the Stargate Project and follow-on investment in OpenAI, is a far-reaching vision to build a generative AI value chain, including power and semiconductors. Mr. Son shares these strategic ambitions with us external directors regularly, and I find them both compelling and inspiring.

As with the acquisition of Arm, some shareholders and other investors have expressed concerns regarding our investment in OpenAI, questioning the valuation and whether it is wise to proceed. What’s critical is whether OpenAI can establish a “winner-takes-all” dynamic in the generative AI space and maintain its first-mover advantage. Mr. Son deeply understands the nature of the Internet and information industries. He has a keen intuition for how early leadership in these sectors creates enduring dominance. Looking back at past successes, our investments in companies like Yahoo! and Alibaba are prime examples of identifying future winners early—well before they were proven winners. I believe that, in the case of OpenAI as well, the investment decision was made with the same clear recognition of that company’s intrinsic value.

One of OpenAI’s standout strengths lies in its start-up–driven velocity. While Big Tech firms like Google are technologically advanced, their corporate caution slows them down. In contrast, OpenAI races ahead—releasing models, gauging market response, and iterating quickly. Its ability to secure substantial capital, attract top talent, and sustain momentum is not easily replicated, even by tech giants. Supporting such high-velocity start-ups is where SBG thrives. Indeed, Mr. Son’s swift decision-making and the Group’s industrial reach, especially through Arm, make SBG an ideal and strategic partner for OpenAI. I believe this positions both companies in a win-win relationship.

The competitiveness of generative AI can be evaluated through many lenses. But ultimately, I believe brand recognition will play a decisive role. As with smartphones or cars, once a product becomes widely adopted, user preferences tend to be shaped not by subtle performance differences but rather by how much trust and familiarity people associate with the brand. OpenAI has already made ChatGPT the first name that comes to mind when people think of generative AI. This brand leadership creates a significant barrier to entry and is a core part of OpenAI’s competitive strength.

Since becoming an external director of SBG in June 2019, I have been impressed by SBG’s ability to navigate both offense and defense with agility. A notable example came in early 2020, when the outlook was still uncertain due to COVID-19. Even before Japan declared a state of emergency, Mr. Son demonstrated remarkable foresight: predicting the coming wave of infections, the development of vaccines by fall of that year, the manufacturing delays that would push vaccinations into the following year, and, ultimately, that it would take about two years for the pandemic to subside. Based on these projections, he set forth a policy to increase cash reserves and strengthen SBG’s defensive posture. Later, as the pandemic waned, he pivoted quickly—moving decisively to offense with bold actions such as the IPO of Arm and, more recently, the partnership with OpenAI. Mr. Son often likens management to warfare. Like a seasoned war strategist, he reads the tides with precision—knowing just when to defend and when to strike. His ability to pivot between offense and defense is truly remarkable.

When it comes to playing offense, Mr. Son’s expansive vision leaves no doubt about the vast potential that AI holds for the future. As an external director, however, I see it as my role to balance that ambition with careful scrutiny from the shareholders’ perspective. All external directors share this mindset. Whenever concerns arise, we engage with the executive team to clarify any questions or request additional information as needed through open communication.

SBG responds to requests from external directors with great sincerity. At its core, the company has an honest corporate culture with absolutely no attempts to conceal or mislead, which earns our trust and makes collaboration easy.

SBG is charting a bold global AI strategy with Arm and OpenAI at its core. At the same time, in Japan, the Group is promoting widespread adoption of generative AI across its companies, such as SoftBank, where tens of thousands of employees are competing to develop ideas for utilizing generative AI. While many companies in Japan have yet to fully embrace AI, there is significant latent demand for adaptation, and I believe SBG’s initiatives are both forward-looking and highly relevant. As generative AI technologies developed by OpenAI continue to evolve, I also see strong potential for new synergies to emerge with the portfolio companies of the SoftBank Vision Funds, which have long invested with the AI revolution in mind.

SBG is one of the few Japanese companies engaging Big Tech head-on in the global AI race. Whether we ultimately win or lose is yet to be seen, but simply taking on this challenge is commendable and deserves far more support from across Japan. I hope our stakeholders will continue to support SBG’s bold challenges. This spirit of challenge can inspire other Japanese firms and help create a broader national momentum to compete on the world stage. Whether Mr. Son’s vision becomes a reality ultimately depends on the execution capabilities of the leadership team. The journey ahead will not be easy. However, I am confident that with unwavering leadership and the right balance of offense and defense, even greater success awaits.