How Masayoshi Son Shaped the Tech Industry w/ Laleh Khalili
Apr 24, 2025
52:17
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Quick takeaways
Masayoshi Son's investment strategies emphasize rapid growth over profitability, significantly influencing the operational models of modern startups in the tech industry.
The deregulation of tech markets in the US and Japan directly facilitated Son's rise, allowing for unchecked capital flow into speculative tech investments.
Son's strategic relationships with influential global figures illustrate the intertwining of tech ambition with international political dynamics, raising ethical considerations.
Deep dives
The Role of Masayoshi Son in Tech Capitalism
Masayoshi Son, the founder of SoftBank, has significantly influenced the financialized model of tech capitalism. His investment strategies often prioritize rapid growth over profitability, exemplified by the model of startups needing to incur losses initially to eventually generate returns. Notably, his involvement with WeWork highlighted the risks associated with this approach, where aggressive funding was met with monumental failures. Son's approach reshaped how startups operate, insisting they follow a trajectory of growth at all costs, thereby impacting the overall tech landscape.
Deregulation and Wealth Accumulation
The processes of deregulation in the US and Japan have been pivotal in enabling Son's rise as a tech investor. Deregulation shifted vast amounts of capital into the tech industry, facilitating the growth of companies without the scrutiny that typically ensures sustainable practices. In particular, events like the privatization of the internet backbone and reduced tax rates under the Clinton administration allowed investors like Son to thrive. His investments benefitted from these shifts, positioning him strategically in a landscape ripe for financial exploration and excess.
Vision Funds: Capitalizing on Speculation
SoftBank's Vision Funds epitomize the speculative nature of tech investments, encouraging a culture of prioritizing high-risk ventures without scrutiny of their fundamentals. These funds attracted significant capital, prominently from Middle Eastern sovereign wealth funds, which was then used to support speculative tech ventures across various sectors. As a result, startups became pressured to pursue aggressive growth models, risking sustainability for inflated valuations that often led to spectacular failures like WeWork. This not only highlighted the volatile nature of venture capital investments but also the systemic issues in the tech funding ecosystem.
Masa's International Alliances and Influence
Son's ability to forge crucial relationships with influential figures, including leaders in Silicon Valley and the Middle East, symbolizes his strategic acumen in the global tech landscape. His friendships with figures like Mohammed bin Salman and involvement in high-stakes projects reflect a merging of technological ambition and international politics. This interconnectedness raises questions about the implications of such alliances, especially as they occur amidst broader political shifts and international tensions. Through these relationships, Son's influence extends beyond business, intertwining with strategic global narratives.
A Cautionary Legacy
Masayoshi Son's legacy is poised to be a cautionary tale, echoing the destructive consequences of unregulated tech-driven capitalism. While he may aspire to greatness akin to historical figures, the destabilizing impact of his financial practices and the environmental costs of tech expansion overshadow any triumphs. His partnerships with controversial leaders and the pursuit of profit at any cost serve as reminders of the ethical considerations that often accompany technological advancement. Thus, Son's narrative becomes one of both astounding financial accomplishments and the broader implications for society and the environment.
Paris Marx is joined by Laleh Khalili to discuss Softbank CEO Masayoshi Son, the structural factors that allowed him to build an empire, and the many ways he’s shaped the modern tech industry.
Tech Won’t Save Us offers a critical perspective on tech, its worldview, and wider society with the goal of inspiring people to demand better tech and a better world. Support the show on Patreon.
The podcast is made in partnership with The Nation. Production is by Eric Wickham.
