The Saudi Arabian government is ready to commit another $45 billion to SoftBank's Vision Fund

By On October 05, 2018

The Saudi Arabian government is ready to commit another $45 billion to SoftBank's Vision Fund

Crown Prince of Saudi Arabia Mohammed bin Salman Al Saud, right, walking on the Google campus with Google co-founder Sergey Brin
Bandar Algaloud / Saudi Kingdom Council / Anadolu Agency / Getty Images

Doubts have swirled in the world of high finance over the last few months about the ambitions of one of the biggest big-money players in Silicon Valley: The Saudi Arabian government.

Those should quiet down a little bit after today.

The man behind the Saudi government’s tech ambitions, Mohammed bin Salman, disclosed in an interview Friday that his country was prepared to invest another $45 billion into the next SoftBank Vision Fund, which has served as the Saudis’ primary tech investment vehicle.

SoftBank, the Japanese telecom giant that has upended the Silicon Valley money world over the last 18 months, has said that it will soon raise another fund that would equip it with more ammunition. The Saudi Public Investment Fund is the Vision Fund’s largest outside backer, and so the tenuous political situation in the country â€" along with the delays in what would be the world’s largest ever IPO, of the Saudi’s state-run oil company â€" were being watched closely in Silicon Valley as tealeaves for whether the barrage of money might abate.


“Without the PIF, there will be no SoftBank Vision Fund,” bin Salman told Bloomberg. “We would not put, as PIF, another $45 billion if we didn’t see huge income in the first year with the first $45 billion.”

Bin Salman said he’s “of course” happy with the performance of the fund, which despite being highly controversial in tech quarters is beginning to see some success, such as the IPO this week of Guardant Health.

The Saudis and SoftBank have formed a tight bond that is rooted in each of their financial needs: The Saudi government has embarked on an ambitious attempt to diversify their economy away from oil â€" leading them into sectors like U.S. tech. And SoftBank’s leader Masayoshi Son is seeking massive stockpiles of readily available cash that can finance startups for hundreds of millions of dollars.

So while it’s not an obvious marriage, it has worked.

Still, look for SoftBank to try and build a broader base of backers in any future Vision Fund â€" which would help insulate the investor against upheavel in any one part of the world. SoftBank, which is transitioning from a telecom company into an investment company, could also play a bigger role in the Vision Fu nd that it has organized.


More From Recode

  • Tesla’s board is too weak to stop its CEO Elon Musk from tweeting
  • Bird’s new scooter delivery service could become a clever hack around city regulation
  • Recode Daily: Facebook employees are outraged by a top exec’s public show of support for Brett Kavanaugh
  • Michael Rubin’s ShopRunner plans to acquire the e-commerce startup Spring
  • Supermicro stock fell 50 percent after a bombshell Bloomberg report that China tried using its servers to spy on Apple
  • Vanity Fair helped create ‘the celebrity industrial complex.’ VF Editor Radhika Jones wants to investigate it.

Recode Daily

Sign up for our Recode Daily newsletter to get the top tech and business news stories delivered to your inbox.

By signing up, you agree to our Privacy Policy and European users agree to the data transfer policy. This Article has a component height of 11. The sidebar size is medium.Source: Google News Saudi Arabia | Netizen 24 Saudi Arabia

« Prev Post
Next Post »