Arm's first day of listing, Son Masayoshi talks extensively about AI: self-proclaimed devout believer, AI will greatly surpass human intelligence.

On Thursday, September 14th, as Arm went public, its parent company SoftBank's CEO, Masayoshi Son, stated that artificial intelligence (AI) will be able to help solve some of the world's biggest problems and potentially surpass human intelligence.

Son said:

I believe this is the first time that humans have experienced something smarter than themselves. Humans are the smartest creatures on Earth, but AI will surpass humans and usher in a great era.

Son referred to himself as a "firm believer" in AI and added that Arm is a "core" beneficiary of the AI revolution. Since founding SoftBank, Son has been a passionate supporter of the chip industry, as chip technology has propelled the development of various technologies.

Arm's IPO on Thursday ended a nearly two-year drought of large tech IPOs in the US stock market. Starting in early 2022, the IPO market and tech stocks have been stagnant, coinciding with the Federal Reserve's largest round of interest rate hikes in 40 years.

After the IPO, SoftBank will still control approximately 90% of Arm's shares, and Son will continue to serve as the Chairman of Arm's board.

Son stated that if mishandled, AI can indeed pose some threats to humanity, comparing its potential misuse to the dangers of speeding or drunk driving. However, he also emphasized that AI can help overcome global issues such as infectious diseases, assist in mitigating natural disasters, and aid in post-disaster reconstruction. Son said:

Society should regulate AI to protect humanity, but its advantages outweigh its disadvantages. So, I consider myself a believer in AI. I am optimistic that AI will solve problems that humanity has been unable to solve in the past.

SoftBank acquired the British chip design company for $32 billion in 2017, considering it the core of its grand vision for AI—a belief that AI will enable SoftBank to "rule the world."

Some analysts believe that as a publicly traded company, Arm faces two distinct and challenging tasks, aside from the potential role it may play in Son's AI vision.

The first is financial—analysts are increasingly skeptical that Son is preparing for an unknown, AI-focused mega-deal that could redefine SoftBank. They suggest that as a publicly traded company with a significant market valuation, Son could potentially raise over $25 billion in additional financing from banks and other sources using the remaining shares of Arm held by SoftBank. Combined with SoftBank's existing cash and loans, this could provide Son with over $65 billion in transaction funds.

On the other hand, Arm's successful IPO will also impact investor sentiment. Regardless of any changes in Son's investment track record, he has built a highly influential image around a series of extremely successful bets. However, Son's recent investments have not been as successful, and investors believe he needs a more remarkable move to maintain his reputation. If the market pushes Arm to a sky-high valuation that Son truly believes in after the IPO, the halo will return to Son's head, and he may sell more Arm shares.