Japanese billionaire Masayoshi Son's SoftBank commits $1 billion to Malaysia AI push

SoftBank Group Corp., the Japanese technology investor run by billionaire Masayoshi Son, has committed $1 billion to two artificial intelligence infrastructure projects in Malaysia, joining ride-hailing and delivery company Grab Holdings Ltd. and Sarawak's state oil company in a plan to build up to 5 gigawatts of computing capacity.

SoftBank, Grab and Petroleum Sarawak Bhd., known as PETROS, signed joint development agreements on Nov. 9, putting a combined $1.85 billion of initial seed capital behind the projects. SoftBank will contribute $1 billion, Grab $750 million and PETROS $100 million, the companies said in statements from Tokyo, Singapore and Kuching. The money will be released in stages as development and customer contract milestones are met.

"AI infrastructure will power the next wave of growth, and Malaysia has the talent and ambition to help lead it," Son said.

The larger of the two projects is in Sarawak, the Malaysian state on the island of Borneo. It starts with $1 billion (about RM4.07 billion) in seed capital, of which SoftBank will put in $800 million and Grab and PETROS $100 million each. SoftBank will lead the Sarawak project and hold a majority stake. Grab has an option to raise its holding, which would cut SoftBank's share, though SoftBank would remain the majority owner.

The second project, in Peninsular Malaysia, starts with $850 million. Grab will provide $650 million and lead it as founding shareholder, while SoftBank adds $200 million.

The partners are aiming for 5 gigawatts or more of AI computing capacity over several years and plan to bring in other investors and large cloud customers.

"We are proud to work with Sarawak to advance AI for the benefit of the region and its people," Son said in a separate statement on the Sarawak deal.

As part of the arrangement, SoftBank agreed in principle to a five-year lock-up on the Grab shares it holds directly. SoftBank was one of Grab's earliest major backers.

From talks to a signed deal

The agreements build on a framework deal that Son signed in Kuching on Oct. 8 with Grab co-founder and Chief Executive Officer Anthony Tan and PETROS Group CEO Janin Girie. That deal committed the three only to study an AI and digital infrastructure platform in Sarawak and draw up a roadmap for phased development. It set no capacity target and no investment figure.

On Oct. 24, Malaysian Prime Minister Anwar Ibrahim told an audience in Melaka that Son had picked Kuching and Peninsular Malaysia for $50 billion of investment in AI, new technology and data centers, recounting a video call with the SoftBank founder. The agreements signed on Nov. 9 are the first firm figures attached to that plan.

PETROS brings energy supply and land to the project. The company manages Sarawak's gas development roadmap and is master developer of the Kuching Low-Carbon Hub, giving the venture access to the power that large AI data centers need.

"This is about preparing Sarawak for its next phase of economic transformation beyond oil and gas," Girie said.

Tan described Malaysia as "a natural home for AI infrastructure that can serve all of Southeast Asia."

Results due Nov. 10

The Malaysian deals land a day before SoftBank reports results for its fiscal second quarter, which ended Sept. 30. The company is scheduled to publish the figures at 3:30 p.m. in Tokyo on Nov. 10, followed by a briefing an hour later.

Investors will be looking for detail on how Son plans to fund his AI ambitions. He has made SoftBank one of the biggest backers of OpenAI and has sold assets, including its entire Nvidia Corp. stake last year, to free up cash for AI spending, from chip design to data centers.

Son, 69, founded SoftBank in 1981 as a software distributor and built it into one of the world's largest technology investors through early bets on companies such as Alibaba Group Holding Ltd. He owns roughly 30% of SoftBank's shares and is one of Japan's richest people.