SoftBank Group, a multinational investment holding company based in Minato, is reportedly looking for IT and business process outsourcing (BPO) companies in India to bet on the AI race. It is in the absence of an indigenous LLM of India that the company is looking to turn into a direct acquirer of assets, losing its decade-long role as a growth- and late-stage technology investor. 

Looking at the industry exploring constant, continuous, and determinant innovations with AI technology, the investors seem convinced and confident to invest in the growing impact and market value of AI-based solutions. Coupled with the immense growth opportunity in the Indian economy, the current AI push presents a golden opportunity for investors. 

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Previous Discussions 

The investment firm was earlier in a discussion with the BPO firm AGS Health for around $1 billion, but it did not materialize as the global asset manager Blackstone swayed it to its portfolio, states the ET report. Other companies that have been involved in similar discussions include WNS Global, intending to leverage AI capabilities in faster delivery services either through acquisitions or strategic alliances, the same report claims. 

As per the report, the investment firm is currently in discussion with several Indian IT firms ready for AI adoption, ranging from financial services to healthcare or legal, whether small-sized or mid-sized, for a potential deal, either through acquisition or any other similar instrument. 

AI in Focus 

With the beginning of the Stargate project, the $500 billion data center project led by OpenAI in the US, to which SoftBank is a key partner. The data center aims to serve the computing demand in 2028. To give an idea of its capacity, the world today uses 128 GW of power, while the project will singularly consume around 1 GW of energy when fully ready, according to Boston Consulting Group forecasts. 

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In the same sequence, SoftBank and OpenAI have also formed a joint venture in Japan to proliferate OpenAI models across the firms associated with SoftBank and within the company itself. This underlines the AI enthusiasm of the investment firm and its lookout for AI-powered firms in India when looked at in the background of India’s economic prowess. 

In simple terms, SoftBank is looking out for BPOs and KPOs to lead transformation through AI, delivering cost efficiencies and revenue growth to IT clients. “AI in India could develop along these lines, building on the existing digital and tech infrastructure,” Alex Clavel, CEO of SoftBank Investment Advisers, told ET in an interview last year.