SoftBank is leading a $280mn funding round in US location-mapping company Mapbox, as the Japanese conglomerate’s founder and chief executive Masayoshi Son steps up his dealmaking in artificial intelligence.
The investment in San Francisco-based Mapbox, according to
people close to SoftBank, is part of a push into AI that fulfils Son’s promise
to go on the “counteroffensive” and has included discussions with multiple
potential investment targets including OpenAI.
Mapbox software sits behind the in-car navigation systems of
Toyota, BMW, General Motors and others — systems that are increasingly adaptive
to changing conditions and whose ability to process new information will be
critical as vehicles become more autonomous.
The decision to plough fresh investment into Mapbox, which
was among the earliest group of companies backed by SoftBank’s $100bn Vision
Fund, comes days after Son’s tech conglomerate listed UK chip designer Arm in
the US.
The Japanese group raised almost $5bn through the initial
public offering of Arm, whose shares rose strongly from their trading debut to
give the chip designer a market capitalisation of $62bn at the end of last
week.
Analysts calculate that the money raised from the listing,
along with the potential for new financing and SoftBank’s existing cash and
borrowings, could combine to provide an estimated $65bn war chest for Son, who
has said that Arm will be at the centre of a push to “rule the world” of AI.
According to PitchBook, which tracks data on private
companies, Mapbox had a valuation of $1.2bn as of its last round in April 2020
and had previously raised a total of $360mn since it was founded in 2011.
People close to the company say that new round values the company marginally
higher — at about $1.3bn — before including new capital raised.
Two bankers involved in the Arm IPO, and close to SoftBank,
said that the chip group’s New York listing was to a significant extent testing
the waters for other tech listings that were shelved in the downturn. These,
including several Vision Fund portfolio companies, have been awaiting signals
that the market had improved enough for them to dust off their IPO plans.
The same bankers said that such companies could include
Mapbox, which internally discussed going public in 2021 through a merger with a
SoftBank-backed special purpose acquisition company but dropped the idea when
the tech market soured.
Mapbox chief executive Peter Sirota, said the new funding
for the group would be used to enhance the ways in which its AI software can
interact more closely with the cameras and other sensors in a vehicle “so
split-second decisions can be made with the best data possible”.
Mapbox’s services include cloud-based location data used by
Facebook, Snap and others. The company will this week be exhibiting at the
Tokyo Game Show for the first time in a bid to promote its services to
developers whose games use real-world locations.