Japan has rapidly adopted new artificial intelligence (AI) tools, positioning itself to significantly boost its economy and tech sector. The country's push for digitalization gained momentum during the Covid-19 pandemic as businesses adapted to remote work arrangements. This digitalization push has helped Japan recover from previously lagging behind in technology adoption. Microsoft Japan President Miki Tsusaka believes that Japan has caught up in adopting AI tools and has the potential to further accelerate its economy and technology industry [60dbed51]. Tsusaka emphasized that Japan's aging population and labor shortages make AI a critical tool for driving growth. She sees AI as an inevitable and transformative part of the tech landscape [60dbed51] [a318da0d].
Microsoft is investing $2.9 billion in expanding its AI data centers in Japan over the next two years, aiming to enhance the skills of women in the local workforce [60dbed51]. Tsusaka also highlighted the importance of cybersecurity and responsible deployment of AI, considering it a top priority. She reiterated the significance of security in AI deployment [60dbed51] [a318da0d].
SoftBank founder Masayoshi Son has declared his readiness to make a major investment in AI [f0d026c9]. Son warns that the next endeavor could be a hit or a flop, but SoftBank has no choice but to try. SoftBank CFO Yoshimitsu Goto also emphasizes the need for more risk-taking as AI development accelerates. Son states that SoftBank's dynamism comes from seeking new seeds of evolution, especially abroad. SoftBank plans to ramp up its renewable power generation business to support generative AI's power needs, particularly in the US. Son aims to go on the offensive again after focusing on Arm Holdings and AI investment strategy. SoftBank has accumulated a cash pile of ¥6.2 trillion. Son is seeking $100 billion to compete with Nvidia and supply semiconductors for AI. SoftBank is in talks to acquire British semiconductor startup Graphcore Ltd. [f0d026c9].
SoftBank CEO Masayoshi Son believes he was born to create artificial superintelligence (ASI) that is 10,000 times smarter than a human. Son stated that every investment he has made throughout his career was a 'warm-up' for his AI investments, and realizing ASI is his only focus. SoftBank recently made five large-scale AI investments of at least $1 billion and backed the AI internet search startup Perplexity AI. Son also highlighted opportunities in autonomous driving, AI robotics, and data centers. SoftBank's flagship Vision Fund posted a $27 billion loss in fiscal year 2021 and a $32 billion loss in fiscal year 2022, but managed to make a profit of $4.6 billion in fiscal year 2023. [efb89e9c].
In the latest development, SoftBank's stock closed at 11,190 yen, hitting a historic high and surpassing its previous peak of 11,000 yen set on February 15, 2000. The rise is attributed to SoftBank's successful bets on the AI industry and its investment in Arm. SoftBank's stock plummeted by over 90% after the bursting of the internet bubble in 2000. In 2017, SoftBank launched the Vision Fund, which invested globally in tech companies. SoftBank's stock finally surpassed its historical closing high on February 16, 2021, but was impacted by the global tech stock crash in 2022. SoftBank's stock surged about 78% in 2023, largely attributed to the successful IPO of Arm and investments in AI. SoftBank's market capitalization is approximately $101.5 billion, while its 90% stake in Arm is worth around $158 billion. Investors question whether SoftBank's market value accurately reflects the value of its holdings. SoftBank may benefit from the broader rise in the Japanese stock market, with the Nikkei 225 Index up 22% this year. SoftBank's early investments in AI could reduce its valuation discount in the future [d68bf877].
Singapore state investor Temasek reported a 1.8% gain in its net portfolio value, with profits from investments in the United States and India offsetting underperformance in China. Temasek's exposure to the Americas surpassed China for the first time in a decade, accounting for 22% of its portfolio. The firm plans to step up investments in Japan and Southeast Asia and is considering building its presence in the Middle East. Temasek's portfolio value is now S$389 billion ($288.5 billion), compared to a 5.2% drop last year. The firm will continue to reshape its portfolio, focusing on companies centered on the domestic market in China. Temasek also has investments in Alibaba Group, Tencent Holdings, BlackRock, Visa, and Mastercard [ec0ef137] [ea1dbb8c].
Singapore's Temasek Holdings, a US$288 billion sovereign wealth fund, has outlined a resilient, diversified investment strategy focused on long-term plays in China and key sectors like healthcare and agriculture. Despite China's economic slowdown, Temasek will maintain its investment focus on the country, targeting companies driving domestic consumption and innovation in sectors like biotech, robotics, EVs, and import substitution. The fund also sees strong growth potential in the US and India, particularly in the areas of digitization, digital payments, financial software, and infrastructure-led investments [2f6d3e6c].
Singapore state investor Temasek plans to invest up to US$12 billion in India over three years in sectors such as financial services and healthcare. Temasek had plans a year ago to invest around US$9 to US$10 billion in India over three years, but it is increasing that goal to US$10 to US$12 billion given the overall economic growth outlook. Temasek's current India exposure includes investments in HDFC Bank, IPO-bound e-scooter maker Ola Electric, and Manipal Hospitals. Temasek will continue to scout for more investment opportunities in the healthcare space as it believes the sector is a 'multi-decade' growth story in India. [a5be038b].
India's largest software company, Tata Consultancy Services (TCS), plans to invest over $1.5 billion in artificial intelligence (AI) and generative AI to transform the work environment for its 600,000 employees. TCS has established 'AI Experience Zones' in India for engineers and employees to develop and experiment with AI solutions. The company is working on an AI-based interview coach that evaluates employee responses and provides corrective feedback. TCS is also implementing AI-based tools for human resources operations, including hiring and training. TCS is building a comprehensive framework of AI skills within the organization and has trained over 300,000 employees in foundational AI skills. The company has created labs for skill-building and is integrating AI technologies into various functions. TCS Chairman N Chandrasekaran acknowledged the potential job losses due to AI automation but highlighted the increased productivity and new job opportunities these technologies would create. TCS reached pre-pandemic levels of employees working from offices and reported a slight decline in the number of women employees. TCS plans to invest in AI to transform the hiring process and work environment [3fd79d9d].