SoftBank’s AI Alliance Gains Industrial Giants as ¥260 Billion Bond Draws Retail Demand

SoftBank's AI venture gains potential backing from Fujitsu and Asahi Kasei; firm also issues ¥260B hybrid bond and redeems US senior notes before AGM.

A confluence of strategic initiatives is putting SoftBank at the center of two distinct but equally important narratives: the race to build homegrown artificial intelligence and the careful orchestration of its balance sheet. Japanese industrial heavyweights Fujitsu and Asahi Kasei are reported to be considering investments in an AI venture co-founded by SoftBank Corp., a move that would bolster Tokyo’s push for competitive domestic models. At the same time, the group is preparing a ¥260 billion hybrid bond aimed at retail investors, alongside an early redemption of US-dollar senior notes — all ahead of the annual general meeting on June 24.

The AI company, launched in April, already counts SoftBank Corp., NEC, Sony Group, and Honda Motor as founding partners. According to a Jiji Press report, the contemplated stakes would fall in the tens of millions of yen range. Fujitsu’s CEO signaled interest in developing national AI models during a recent business presentation, while Asahi Kasei has also been named as a potential backer. For shareholders of SoftBank Group, which consolidates SoftBank Corp. under its “SoftBank” segment alongside an “AI Computing” unit, the implications are indirect but financially material.

That segment generated net sales of ¥7.03 trillion and segment profit of ¥965 billion in the last fiscal year. The AI Computing segment, which houses Arm, Ampere, and Graphcore — covering semiconductor intellectual property, chips, and software tools — posted revenue of ¥640 billion but remained in the red with a loss of ¥137 billion. The overall group’s results were far stronger: revenue climbed 7.7% to ¥7.799 trillion, while net profit attributable to the parent company surged 334% to ¥5.002 trillion. Cash and equivalents swelled to ¥5.362 trillion from ¥3.713 trillion a year earlier.

The capital markets activity underscores SoftBank’s push to optimize its funding mix. The hybrid bond, with terms to be finalized on June 5, carries a preliminary coupon of 4.80% to 5.60% for the first five years. Subscriptions run from June 8 to June 18, with issuance scheduled for June 19. Proceeds will be used to replace US-dollar-denominated hybrid notes that have an optional redemption date in July 2027. SoftBank expects rating agencies to treat 50% of the new instrument as equity. Meanwhile, on June 9, the company will redeem $669.3 million worth of 4% senior notes at par — notes that were not due until July 2026. This early retirement reduces fixed charges and simplifies the liability structure.

Shareholders will have a platform to discuss these developments at the 46th ordinary general meeting on June 24 at 10 a.m. Tokyo time. SoftBank has opened a channel for questions and statements, unusually accepting submissions even from non-shareholders. Topics generating the highest interest are to be addressed directly during the meeting. The agenda includes three items: appropriation of retained earnings, amendments to the articles of incorporation, and election of nine directors. Submissions are accepted until June 22 at 5 p.m. local time.

The stock, which closed at ¥7,491 on Friday, gained 5.14% on the day and oscillated between ¥7,321 and ¥7,710. The 52-week high of ¥8,038, touched on May 27, remains the key resistance level for momentum traders. The previous close of ¥7,125 provides near-term support. With five major events packed into three weeks — hybrid bond terms on June 5, senior note redemption on June 9, the AGM question deadline on June 22, and the meeting itself on June 24 — investors are watching to see whether expressions of interest in the AI venture harden into binding commitments. Without concrete financial pledges, that story remains in the exploratory phase. The stock’s proximity to its 52-week high suggests the market will demand substantiation behind the headlines.