SoftBank's Masayoshi Son Talks AI, Future At Arm's Historic IPO

Arm Holdings PLC ARM, known for its CPUs that Nvidia Corp.'s NVDA GPUs rely on for artificial intelligence, took center stage Thursday with its IPO at a valuation of $54.5 billion, setting the record for 2023.

The company shares are now trading at the $60 level, with SoftBank Group Corp - ADR SFTBY, the 2016 buyer of Arm for $32 billion, retaining 90% of its holdings.

In a Thursday CNBC interview, discussions veered toward the future of artificial intelligence (AI). Masayoshi Son, SoftBank's founder, shared his thoughts.

"Since I started SoftBank, I [have been] a big believer of the micro-processes enabling all kinds of technology evolution starting with PC, and then Mobile, Internet, and then now going into AI. AI is the front end of all the innovation of our industry," Son said.

He emphasized Arm's role in the AI revolution, mentioning that the company will become the core of it. Son highlighted the 500 companies under the Vision Fund portfolio, seeing significant AI applications benefiting from Arm and other AI tech players.

Read Also: SoftBank Retains 90% Of Arm After IPO: Haas, Son Discuss China Dynamics

When asked about artificial general intelligence (AGI) shaping society, Son responded, "I think this is the first time that mankind experienced something smarter than mankind itself. Right? Mankind was the smartest animal on the earth. The AI is going to surpass, and surpass big time.”

He continued, “I think the AGI stage is coming very soon. And once it comes — we all have to ask ourselves... What is mankind? What is a job? What is life? What is intelligence? It's a new experience, a completely new society that we are going to face."

Discussing governmental concerns about AI on the heels of Congress’ AI session this week, Son compared it to automobiles. "Well, if we mishandle it, it has a danger like automobile society. It has [the] danger of [a] car accident if you don't regulate. The automobile society is regulated with traffic lights and speed limits, and don't drive with alcohol.”

Arm CEO Rene Haas was also optimistic about AI's trajectory.

"We are going to see some very, very profound advancements around AI going forward. The ChatGPT moment, if you will, I think was a tipping point relative to what the capability of these large language models could do," Haas remarked.

As Arm designs play a vital role in Nvidia's AI-powered chips, Haas anticipates a surge in growth for Arm. He also noted the societal and ethical considerations accompanying AI advancements.

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