Apple Inc. (NASDAQ:AAPL) has confirmed they will be investing $1 billion in a tech fund that was set up by SoftBank of Japan. SoftBank has also confirmed that Apple has agreed to make the investment. This will be a big boost for the fund and what it wants to achieve, but it is an important investment for Apple as well.
Masayoshi Son, the founder of SoftBank said in October last year, the fund will need a minimum of $100 billion so that adequate investments can be made in emerging technologies to get back meaningful results. The SoftBank Group (TYO:9984) of Tokyo is itself putting in $25 billion. The Public Investment Fund of Saudi Arabia, led by the country’s royal family is expected to invest $45 billion. SoftBank is presently holding talks with a few other businesses and tech investors to bring the fund up to $100 billion.
Among other potential investors are Qualcomm, Foxconn and Oracle Corporation. Qualcomm has said they are discussing it at this time but added that the investment amount will remain confidential.
Apart from developing technologies of the future, the fund will also make large-scale investments. In fact, in the future, SoftBank wants to make their investments solely through this fund.
Important Strategic Investment for Apple
Josh Rosenstock, an Apple spokesman said, “We believe their new fund will speed the development of technologies which may be strategically important to Apple”. Josh went on to add that Apple has worked with SoftBank for many years and believe this fund is going to develop technologies that will be important strategically to Apple.
Big Announcement From SoftBank After Son Meets Trump
The fund first gained public attention when the billionaire Masayoshi Son met Donald Trump and pledged to create more than 50,000 American jobs in the next few years by investing $50 billion. Trump later claimed that Son had said he is making the investment only because Trump won, which Son did not deny. However, Son did add that it will help them make the investment if business regulations were eased.
It was learned a few days later that the $50 billion investment will come from the $100 billion tech fund SoftBank was setting up.
Apple (NASDAQ:AAPL) is yet to make a comment on whether their $1 billion investment will help Masayoshi Son’s pledge of creating jobs in the US. If they confirm this move, then it may ease the tensions between Apple and Trump over the tech giant’s manufacturing in China.