ARM Stock Crashes After SoftBank's Masayoshi Son Declares Pursuit of ASI, At All Costs

SoftBank's CEO, Masayoshi Son, made a bold announcement today, declaring his relentless pursuit of Artificial Super Intelligence (ASI) at all costs. This declaration has triggered alarm among investors, resulting in ARM stock plummeting nearly 10 percent.

The History of Masayoshi Son: A Risk-Taker's Journey
Masayoshi Son is a legendary figure known for his immense appetite for risk. Jack Ma famously remarked that Son "probably has the biggest guts in the world on doing investments." Son's journey to wealth began with selling technology for the first translation machine to Sharp and Japanese arcade machines to American restaurants.
In 1981, he founded SoftBank, initially as a software distributor. Over the decades, Son's bold investments and ambitious vision have made headlines, cementing his reputation as a risk-taker with a penchant for high-stakes gambles.

Major Investments: Triumphs and Tragedies
Son's investment portfolio boasts legendary successes and monumental failures. In 1995, he invested $100 million in Yahoo for a 30% stake, and by the next year, Yahoo's NASDAQ listing yielded a 250% profit for SoftBank. Another remarkable investment was the $20 million injected into Alibaba in 2000, which ballooned to $60 billion by 2014, achieving a staggering 3000-fold increase.
However, Son's career is also marred by significant setbacks. The most notable flop was the now-bankrupt WeWork, where SoftBank incurred losses amounting to $14 billion. These extreme highs and lows reflect Son's high-risk, high-reward strategy, often leading to polarized opinions about his investment acumen.

The SoftBank Group Portfolio: Vision Funds and ARM
In 2017, Son launched the SoftBank Vision Fund, amassing over $100 billion to become the world's largest technology-focused venture capital fund. With an aggressive investment strategy focused on "dreaming big" and "going international," the Vision Fund quickly made waves. However, the follow-up Vision Fund 2 struggled to replicate this success, with SoftBank investing over $50 billion due to a lack of external support, likely influenced by Son's controversial investment style.
SoftBank's acquisition of ARM, a key player in the AI-driven tech sector, has been a focal point of its portfolio. ARM's performance and technological advancements have been instrumental in driving SoftBank's market confidence, even propelling Son back to the status of the richest person in Japan, up until Son's recent declarations.

Masayoshi Son's Speech: A Focus on Izanagi and ASI
Son's recent speech at a shareholder meeting emphasized his commitment to the Izanagi project, which plans to invest $100 billion in AI-related chips. When asked about the project's specifics, Son offered scant details but showcased unwavering dedication to pursuing ASI. He prioritized the evolution of humanity through super intelligence over traditional financial metrics such as share buybacks or dividends.
Son's remarks about the relative insignificance of immediate financial returns compared to his vision for ASI have raised concerns among investors about his strategic direction and prioritization. His statements underscored his view that share buybacks and dividends were minor issues compared to his technological aspirations, which he believes will ultimately boost shareholder value.

Market Sentiments: The Gambler Strikes Again
The market's reaction to Son's speech has been overwhelmingly negative. Many investors see his ambition as another high-stakes gamble reminiscent of his past ventures. Fearful of another WeWork-like disaster, investors began offloading ARM stocks, resulting in a nearly 10 percent crash.
Son's insistence on pursuing ASI "at all costs" has heightened fears that SoftBank might overextend itself, jeopardizing financial stability. This skepticism among the investor community reflects broader concerns about Son's ability to balance visionary projects with prudent financial management.

Visionary Ambition or Risky Overreach?
Masayoshi Son's declaration to chase ASI has left investors divided. While some see echoes of his legendary investments in Yahoo and Alibaba, many others fear another WeWork-style disaster. This latest bold move suggests that SoftBank is at a critical juncture, guided by a CEO whose grand ambitions could either elevate the company to new heights or lead to a catastrophic downfall. As Son continues to champion transformative technologies, the market remains on edge, watching closely to see whether his visionary pursuits will pay off or prove too risky.