Apple Plans to Invest $1 Billion into SoftBank Group’s Vision Fund

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On Wednesday, Apple Inc. announced that they are planning to invest as much as $1 billion into the new technology fund started by SoftBank Group Corporation. The purpose of this investment is to help Softbank Group develop their technologies a lot faster. These are technologies which Apple strategically thinks will be important for them in the future.

The goal of the Softbank Vision Fund is to amass $100 billion towards financing their technologies. The fund was first announced back in October and it is now about to launch later in January. Softbank Group is also putting $25 billion of their own money into the investment fund as well. Aside from these two companies, another $45 billion investment has been made toward the fund by the Saudi Arabian government. Other rumored investors include Qualcomm Inc., the Qatar Investment Authority, and Abu Dhabi’s sovereign-wealth fund.

Apple has been known in making investments into smaller technology companies for a while now. The idea is that if the technologies of these smaller companies turn big, then Apple will have a stake in the success of it. In 2016, Apple made a $1 billion investment into the Chinese company Didi Chuxing Technology Company. This company is basically the Chinese version of Uber Technologies, but they are two separate companies and are competitors of each other.

So, why would Apple invest a whopping $100 billion into a new technology fund? Well, Softbank Group plans to develop revolutionary technologies such as the “Internet of Things” and artificial intelligence. The Internet of Things is a term which describes a plan to create everyday objects that are able to connect to the internet. These could be cars, watches, thermostats and more.

Apple’s annual report filing shows that it has over $237 billion in cash to invest with. The majority of that money is located in banks outside of the United States because of tax purposes.

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