Electronics producer Apple has entered talks with telecom and internet group SoftBank over a $1bn investment in the latter’s Vision Fund, Reuters reported yesterday citing a source familiar with the matter.
SoftBank announced plans for the $100bn Vision Fund in October 2016 and has since been in discussions with prospective limited partners for the remainder of the capital. The fund will act as the vehicle through it makes late-stage investments in technology companies.
The firm has committed up to $25bn to the fund, which recently opened its head office in the UK, and chief executive Masayoshi Son said earlier this month it is already likely to be oversubscribed.
The Saudi Arabian Public Investment Fund is set to invest up to $45bn and the government of Abu Dhabi’s Mubadala Development Company is also lined up as a backer.
Apple takes part in a healthy rate of M&A deals but has been relatively quiet when it comes to corporate venturing, particularly in comparison to Google owner Alphabet, which has slowly been moving into the hardware space where it would challenge Apple directly.
However, Apple did invest $1bn in China-based ride ordering service Didi Chuxing in May this year amid speculation it would look to arrange a partnership in the autonomous vehicle sector. It is considering the Vision Fund investment to bolster its exposure to innovative technologies, according to the Wall Street Journal.
News of Apple’s interest comes a week after reports that Son had met with US President-elect Donald Trump and agreed to invest $50bn in the US, capital which Dow Jones has reported will come from Vision Fund.