On Tuesday, Apple Inc. (NASDAQ:AAPL) confirmed they will be investing $1 billion in the new huge “new technology” fund that is headed by SoftBank of Japan. With a total value that exceeds $100 billion, the fund aims to invest money in the research and development of emerging technologies that can impact the world in the next few decades.
The SoftBank Led Massive Technology Fund
Other prominent investors here include the government of Saudi Arabia, Foxconn Technology, Qualcomm, Oracle Corp, and of course, the Masayoshi Son led SoftBank. Saudi Arabia has committed already to put in $45 billion over the next five years, making them the biggest investor. SoftBank has pledged $25 billion to the fund.
The fund was announced last October, with Masayoshi Son pledging to invest in the technology sector globally. When Son met Trump in New York, he also promised the President-elect that the fund will create 50,000 new jobs in the United States. Son even commented that he is making this pledge only because Trump won the election.
Apple was happy to be a part of the fund. Kristin Huguet, the spokeswoman said, “We believe their new fund will speed the development of technologies which may be strategically important to Apple”. She added that Apple is confident of SoftBank. “We have worked with them for many years, and believe their new fund will speed the development of technologies which may be strategically important to Apple”.
Apple Is Changing Their Strategy
However, it is unusual for Apple to invest such a lot of money, as the business does not usually put money into venture-capital funds. Observers are saying that this is a clear change of strategy by the California-based tech giant. In another aberration, Apple (NASDAQ:AAPL) decided last year to invest $1 billion in China’s Didi Chuxing Technology, which is a ride-sharing competitor of Uber in the country. That was also unusual.
The technology fund still has a long way to go, though, before it can raise the promised $100 billion. Qualcomm, for instance, has conceded that they will be investing money in the fund, but they are yet to announce the specific amount. “It is still under discussion”, they say.
Meanwhile, another investor, Foxconn says “We do not have any announcements to make at this time regarding any future investments”. They are yet to confirm the investment, though the fund has already named them as an investor.