SoftBank Eyes AI-Powered IT and BPO Acquisitions in India

SoftBank is making a significant shift in its investment strategy by considering acquiring Indian IT and BPO firms to integrate artificial intelligence. This move marks a departure from its traditional role as a growth and late-stage technology investor, signaling a new focus on direct asset acquisition.

The Japanese conglomerate, led by CEO Masayoshi Son, has held talks to acquire BPO firm AGS Health in a potential $1 billion deal. However, these discussions did not materialize, with Blackstone taking the lead. SoftBank is also in talks with other outsourcing firms like WNS Global, aiming to combine AI capabilities with services delivery at scale.

India lacks large-scale AI foundational models like OpenAI or Anthropic, making it a prime target for SoftBank’s AI integration efforts. The conglomerate is meeting with a range of small-to-mid-sized IT services firms across sectors such as financial services, healthcare, and legal, to explore opportunities for AI disruption.

“SoftBank is keen to accelerate the implementation of AI across the outsourcing sector. They believe they can bring the necessary resources to deploy AI, transforming traditional BPOs and KPOs into tech-enhanced service providers,” said a source familiar with the matter.

SoftBank’s vision for AI in India aligns with its broader global strategy. The SoftBank Vision Fund, which has invested $160 billion globally, is eyeing opportunities in AI infrastructure and data centers in India. Alex Clavel, CEO of SoftBank Investment Advisers, previously stated that the group was exploring backing AI infrastructure and data centers in India, building on the existing digital and tech infrastructure.

The company has launched The Stargate Project, a $500 billion initiative over four years aimed at building AI infrastructure in the US to support OpenAI. In parallel, SoftBank is developing an advanced enterprise AI solution called Cristal Intelligence in collaboration with OpenAI. Announced earlier this year, Cristal Intelligence aims to enable AI agents to form advanced systems that can adapt to any enterprise’s needs.

In the US, Son has proposed setting up an AI and robotics manufacturing industrial zone in Arizona, similar to Shenzhen, China, at a cost of $1 trillion. This project, codenamed 'Crystal Land,' would include R&D labs and production facilities focused on artificial general intelligence (AGI) and advanced semiconductors.

SoftBank, which primarily invests in India through its Vision Fund vehicles, has backed several prominent startups, including Swiggy, Delhivery, Paytm, and Ola Electric. After a period of holding off from fresh investments, the company has started scouting for deals ranging from $30 million to $40 million. While discussions with wearables startup Ultrahuman fell through, SoftBank remains flexible in its approach to investments in India.

Sumer Juneja, managing partner for India and EMEA at SoftBank, noted that India remains a key market. The fund is prepared to increase its commitment as companies scale and require more capital, aligning with its broader AI-driven strategy.