AI Revolution: SoftBank’s Masayoshi Son Calls it 50x Bigger Than Dot-Com Boom

The artificial intelligence revolution is poised to dwarf the dot-com boom of the early 2000s, potentially by a factor of 50, according to SoftBank CEO Masayoshi Son. Speaking to CNBC, Son articulated a vision where AI represents not just a technological leap, but a fundamental paradigm shift in human history, akin to the dawn of the internet itself.

“I think this is like more than 10x, probably 50x bigger than dot-com,” Son stated, underscoring the profound implications of AI’s unfolding trajectory. This assertion comes on the heels of SoftBank’s monumental announcement of a 75 billion euro ($87 billion) investment dedicated to establishing AI infrastructure in France. This ambitious undertaking includes the development of 5 gigawatts of AI data center capacity, signaling a strategic pivot towards powering the next wave of technological innovation.

Son drew parallels with historical technological disruptions, recalling the dot-com crash. He emphasized that while such corrections are inevitable, they ultimately serve as stepping stones in a much grander narrative of long-term growth. He referenced the 1929 Wall Street crash, noting that despite the collapse of auto and electronics stocks, these sectors experienced centuries of subsequent expansion, illustrating that market volatility often precedes significant, sustained advancement.

“This is the biggest revolution of technology and realization that mankind ever experienced, so this is just like the beginning of the internet,” Son added. He further elaborated, stating, “Now, if you look at the history, electronics and motorization crashed in 1929, but went up for many, many years, for the next 100 years after that… so there may be some correction, but that will be the best investment opportunity to me.”

SoftBank’s strategic alignment with the burgeoning AI landscape is further evidenced by its collaboration with OpenAI. Last year, the two entities joined forces on the Stargate project, a significant venture aimed at developing robust AI infrastructure within the United States. Son expressed confidence in SoftBank’s diversified investment portfolio, asserting that the group’s exposure to OpenAI, while substantial, represents just over 20% of its net asset value. Notably, British semiconductor giant Arm remains SoftBank’s largest holding, accounting for over 50% of its net asset value. As OpenAI reportedly prepares for an initial public offering, Son anticipates significant success for the AI pioneer, stating, “OpenAI will be very successful.”

Softbank’s substantial investment in France marks its most significant AI infrastructure commitment in Europe to date. The plan entails the construction of 3.1 gigawatts of AI data center capacity by 2031, with key development sites in Dunkirk, Bosquel, and Bouchain, strategically located in the northern Hauts-de-France region. The announcement contributed to a notable surge in SoftBank’s stock, which closed 14% higher.

“It’s a massive size of investment coming,” Son remarked during a press briefing with French President Emmanuel Macron. “We are doing that in the U.S. already, we are expanding a lot in the U.S., so we have the momentum, which we can make France the center of Europe, and Europe needs this kind of AI technology.” This strategic positioning aims to leverage SoftBank’s existing momentum in the U.S. to establish France as a pivotal hub for AI development and deployment across the European continent.

Son elaborated on the financial strategy behind this massive undertaking, indicating that the project will largely be financed through project-specific funding rather than relying predominantly on SoftBank’s own capital. He drew a parallel to the company’s 10-gigawatt project in Ohio, which is on track to secure long-term customer agreements. This approach mitigates financial risk while demonstrating strong market demand and customer confidence.

“Our own money that we need is very, very condensed, so I’m confident that we’re going to get big purchase orders from our customers that we already have relationships [with], so we can extend that momentum into France,” Son explained. This model leverages pre-existing customer relationships and projected demand to de-risk the large-scale infrastructure buildout.

In a strategic partnership designed to bolster industrial-scale production capabilities, the Japanese investment giant is collaborating with French industrial powerhouse Schneider Electric. Together, they will establish a large-scale industrial production hub in Dunkirk, a critical component of the broader AI infrastructure development initiative.