EP07:Deep Into - Gambling Man
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All right, let's dive into the world of Masayoshi Son and SoftBank. Ah, sounds good. We've got excerpts from Gambling Man Son's biography. It reads like a tech thriller. Oh. Full of ambition and risk and those, like, hold your breath moments. Yeah. But what's really cool is this biography is structured like a story. Oh.

Interesting. So we're not just getting like facts and figures, but a real sense of Sun's personality. Okay. And like the forces that shaped him. I think that biographical approach is so fascinating. It really reveals Sun's drive. Yeah. I mean, we're not just talking about a shrewd businessman. Right. We're seeing the influence of his childhood, his family dynamics, even his personal struggles. It's like piecing together a puzzle to understand what makes him tick.

Okay. So let's unpack this puzzle. Yeah. Starting with his early life. Okay. Son was born into a Korean family in Japan facing prejudice and poverty. Right. Imagine growing up in a makeshift cow shed. Wow. Near a railway station. Yeah. Talk about a challenging start. How did these early experiences shape his outlook? Well, it's crucial to understand the historical context. Yeah. The Korean diaspora in Japan faced a

immense difficulties. Right. Especially after World War II. Yeah. Sun's family navigated a complex social landscape. Yeah. And their journey instilled in him a deep sense of resilience. Right. Even his father, Mitsunori. Okay. A pachinko parlor owner. Oh, wow. He embodies this

duality of ambition and struggle. So we've got this backdrop of resilience. Yes. But there's also this fascinating paradox with Sun's father. Okay. He instilled in Masa the importance of hard work and dignity. Yeah. Yet was involved in businesses that might be considered ethically ambiguous. Okay.

How do you think this influenced Sun's approach to business? That's a great question. Yeah. Mitsunori's story really reflects the complexities of their circumstances. This push and pull between traditional values and the drive to succeed, even if it meant bending the rules. It's almost like Masa inherited this instinct. Right.

Right. To operate within the gray areas. Yeah. Pushing boundaries to achieve his goals. And that drive eventually leads him to America. Yes. Which seems like a pivotal turning point. It was. At UC Berkeley, he has what the biography calls his American awakening. Right. He embraces his Korean heritage despite his family's disapproval. Interesting. And really starts to explore his entrepreneurial side. Okay. How do you see this period shaping his trajectory?

California was like a breath of fresh air for Sun. Yeah. It exposed him to a culture of innovation and risk-taking. Yeah. That was quite different from the more traditional Japanese business world at the time. Right. He even meets Tadashi Sasaki. Okay. A renowned sharp engineer. Okay. Who becomes an early mentor. Right. Recognizing Sun's potential. Yeah. And even helping him secure his first million-dollar deal. Hold on. A million-dollar deal already? Yeah. What was that about?

It's a classic example of Sun's knack for seizing opportunities. He partnered with Forrest Moser to develop a pocket speech translator. Oh, wow. A groundbreaking invention at the time. Yeah. This early success really cemented his belief in his own abilities. Right. And set the stage for his future ventures. So we've got this ambitious young entrepreneur. Yes. Who's already tasted success. Right.

What happens next? Well. How does SoftBank, this small software distribution company. Yeah. Come into the picture. So SoftBank's early days were marked by audacious moves and a willingness to take risks. Okay. Even when facing setbacks. Yeah. Remember, this is a company that nearly went bankrupt multiple times. Wow. And Sun himself received a life altering diagnosis. Oh no. At 24, he was told he had chronic hepatitis B. Oh.

and might only have a few years to live. Wow, that's heavy. Yeah. I can't imagine facing such a diagnosis. Right. Especially while building a company. Yeah. How did he respond to that? It's incredible, isn't it? Yeah. Instead of being defeated, Sun used his diagnosis as fuel. It amplified his sense of urgency, pushing him to work even harder and achieve his goals faster. Wow. It's almost like this near-death experience solidified his drive and risk tolerance.

So he's got this resilience. Yeah. This audacious style. But how does he actually start making waves in the tech world? Okay. What are some of those early gambles that define his journey? Well, there's that story about him selling national semiconductor chips. Okay. Without actually having the rights to do so. It was a risky maneuver, definitely pushing ethical boundaries. All right. But it

it ultimately worked out for him. Wow. This episode really highlights his ability to charm his way out of tricky situations and spin things to his advantage. He sounds like a master negotiator. He was. Always a few steps ahead of everyone else. Yeah. Did this kind of risk taking continue as SoftBank grew? Absolutely. Okay. He had this uncanny ability to spot emerging trends. Right. And capitalize on them. Like what?

For example, when he saw the video game craze sweeping Japan, he immediately figured out how to bring it to the U.S. market, making huge profits with games like Space Invaders. Wow. Yeah. So we've got this ambitious guy. Yes. Building his empire. But what's happening in Japan while he's conquering the U.S. market?

So remember, this is the late 1980s and Japan's in the middle of a massive economic bubble. Right. Real estate prices are soaring. Yeah. The stock market is booming and there's the sense of invincibility. Yeah. Unfortunately, Sun's family got caught up in this frenzy. Oh. His father, Mitsunori, starts making risky real estate deals. Rack

Picking up millions in debt and putting the family fortune at stake. Oh, no, this sounds familiar. Yeah. Like father, like son, both taking huge risks. But this time it's the father who's in trouble. Exactly. What happened?

Well, when the bubble bursts, it's Sun who ends up bailing his father out. Wow. This episode really highlights the tension between Sun's ambition and his family ties. Right. He's driven to succeed. Yeah. But also feels a strong sense of responsibility towards his family. Right. Showcasing this constant push and pull between tradition and his desire for innovation. It's fascinating how his personal life and business ventures are so intertwined.

It is. So we've got this guy building a global tech company. Yeah.

dealing with family drama. Right. All while Japan's economy is imploding. Yeah. That's a lot to juggle. A lot. How does he navigate all this pressure? It's a good question. And eventually take SoftBank public. Well, that's where things get really interesting. And we see Sun's personality shining through. Right. He thrives under pressure. Okay. Always seeking the next challenge. Yeah. Even if it means going up against the biggest players in the game. Right. Like when he decided to take on NTT, Japan's TGP.

This telecom giant. This is already a wild ride. It is. And we're just getting started with Sun's journey. Yeah. He's got this ambition, this drive, and this knack for spotting opportunities before anyone else. I can't wait to see what happens next. You're in for a treat. This is just the tip of the iceberg. Stay tuned. Because Sun's story gets even more fascinating as we delve into his battles with NTT. Okay. His pivotal investment in Yahoo!.

Right. And his relationship with a certain Steve Jobs. Okay, I can't wait. Yeah. So Sun's battle with NTT, it wasn't just a business rivalry. It was like this clash of ideologies. Okay. He saw NTT as a symbol of Japan's

bureaucratic inertia. This giant corporation holding the country back from embracing the digital revolution. So it was personal for him. Yeah, definitely. He wasn't just fighting for market share. He was fighting for the future of Japan's tech landscape. And he wasn't afraid to play hardball. Really? Yeah. I mean, he even challenged the government to do it.

pushing the boundaries of what was considered acceptable business practice. He believed so strongly in the transformative power of the Internet that he was willing to take on anyone who stood in his way. And this brings us to Yahoo.

One of his most audacious moves. Oh, it's huge. Offering unlimited internet access for a fixed price was groundbreaking back then. It was. It seems like a no-brainer now. Yeah. But it was a huge gamble at the time. It was a classic Sun move. Yeah. A bold strategic bet that

paid off handsomely. It catapulted SoftBank to the forefront of Japan's internet scene. Yeah. But it also revealed his tendency to like leverage the company to the hilt in pursuit of his vision. Right. He wasn't afraid to put everything on the line. This high stakes approach

Seems to be a recurring theme in his story. It does. He's constantly pushing the limits. Betting big. Yeah. And somehow managing to come out on top. He did. Were there any times when this approach backfired? Yeah. Were there any close?

close calls? Oh, absolutely. Okay. Remember those accusations of financial shenanigans by whistleblowers? Oh, wow. They claimed SoftBank was cooking the books, engaging in all sorts of shady accounting practices. Wow. It's a major scandal that could have brought the whole company crashing down. That sounds intense. It was. How did he navigate that crisis?

Well, Sen's a fighter. Okay. Instead of crumbling under pressure. Right. He went on the offensive. Okay. Vehemently denying the allegations. Right. And launching a counterattack against his accusers. Wow. He somehow managed to weather the storm. Yeah. And emerge unharmed.

relatively unscathed, demonstrating his resilience and uncanny ability to control the narrative. So he's got this resilience, this ability to spin things in his favor. Yeah. But he's also operating in a volatile market. Right. This is the dot-com era. Yeah. A time of incredible growth and speculation. Absolutely. But also a time when fortunes could vanish overnight.

Definitely. How did Sun navigate the dot-com bubble? Well, he was right in the thick of it. Okay. Investing heavily in companies like E-Trade and Webvan. Pouring millions into startups. Right. That promised to revolutionize the world. Right. When the bubble burst. Yeah. Many thought he would be wiped out.

Right. But Sun surprised everyone. I'm sensing a pattern here. He has this almost supernatural ability. It does seem that way. To anticipate market shifts. Yeah. And turn potential disasters into opportunities. That's a good way to put it. What was his strategy during the dot-com crash? He didn't panic while others were selling off assets and scrambling to survive. Sun saw the crash as a chance to consolidate his position.

Interesting. He bought up undervalued companies, strengthened SoftBank's core businesses, and prepared for the next wave of innovation. Wow. He knew the internet was here to stay, even if the market had temporarily lost faith. This is where his long-term vision really shines through. Yeah. He's not just reacting to market trends. Oh. He's anticipating them. Right. Almost like a chess grandmaster. Yeah.

Thinking several moves ahead. And it's during this period that he makes what's arguably the most significant investment of his career, Alibaba. Alibaba, yeah. You're right, that investment was a game changer. Meeting Jack Ma, this energetic Chinese entrepreneur with a vision for an online marketplace...

was a pivotal moment. Sun saw something special in Ma. Okay. And in the potential of e-commerce in China. Right. A market that was just starting to open up. I'm guessing he didn't hesitate to invest. Not at all. He invested $20 million for a 30% stake in Alibaba. Wow.

Wow. A company that at the time was barely making any money. Wow. It was a huge gamble. Yeah. But it turned out to be one of the most successful venture capital investments of all time. Alibaba's IPO in 2014 made Sun one of the richest men in the world. Yeah, it did. It's the kind of success story that legends are made of. It is. But I imagine this level of success also comes with its own set of challenges. How did this massive win...

effect Sun and his ambitions. It's fascinating, isn't it? Yeah. On one hand, it validated his belief in the transformative power of the internet. Right. And his ability to spot winning ideas. Right. But it also created this enormous pressure. Yeah. This need to find the next Alibaba. Right. The next big thing. Yeah. That would solidify his legacy as one of the greatest tech investors of all time. So he's reached the pinnacle of success. Uh-huh.

But he's still not satisfied. It seems. He's still driven by this insatiable hunger for more. Right. For bigger wins. Yeah. For bolder bets. Exactly. What happens next? Where does he set his sights? Yeah. After conquering the Internet world. His next big move takes him back to Japan.

Okay. But this time into the world of mobile phones. Interesting. Remember, this is before smartphones were ubiquitous. Right. He sets his sights on Vodafone Japan. Okay. A struggling telecom company. Right. And decides to acquire it for a staggering $17 billion. Wow, $17 billion. Yeah. That's classic Sun, isn't it? He is. He doesn't just dip his toes in the water. No, he dives headfirst into the deep end. Exactly. What was his strategy with Vodafone Japan? He had this...

grand vision of transforming Vodafone Japan into a mobile powerhouse. Okay. He rebranded the company. Yeah. Launched those memorable ad campaigns with the talking white dog. Oh, yeah. And introduced aggressive pricing plans that shook up the entire Japanese mobile market.

And then, of course, there's the iPhone. Of course. He secured exclusive rights to sell the iPhone in Japan. Yes. A move that completely revolutionized SoftBank's mobile business. It did. And solidified its position as a leader in the Japanese market. Yeah, that was a huge deal. It was. Sun's foresight in recognizing the iPhone's potential was remarkable. He understood that this wasn't just another phone. Right. It was a

paradigm shift and how people would communicate and interact with technology. And he was willing to take a huge risk to secure his place in that revolution. But even with his remarkable successes, Sun's journey wasn't without its setbacks. That's true. The 2008 financial crisis must have been a particularly challenging time for someone who had leveraged his company so heavily. Yeah, that's an understatement. Wow.

Sun's exposure to complex financial instruments, especially those collateralized debt obligations, CDOs, that were at the heart of the crisis nearly brought him down. Oh, wow. He lost billions, had to sell off valuable assets, and faced the very real possibility of his entire empire collapsing. So he's facing this immense financial pressure, dealing with the fallout of a global crisis. Mm-hmm.

But somehow he manages to survive. Right. How did he pull through this? Well, what does this tell us about his character?

His ability to weather that storm is a testament to his resilience. Yeah. His almost superhuman ability to compartmentalize and focus on the bigger picture. Yeah. He made tough decisions. Right. Restructured the company. Yeah. And somehow managed to navigate through one of the worst financial crises in history. It's like he's got this uncanny knack. It really is. For escaping unscathed. Yeah. Even when it seems like the odds are stacked against him. Yeah. Yeah.

It's clear that he's not just a brilliant businessman, but also a survivor, someone who can adapt and thrive even in the face of extreme adversity. But all this focus on his business dealings, his risky bets, and his financial maneuvering makes me wonder about the man behind the empire. What's he like on a personal level? What are his motivations beyond just making money?

That's where things get even more intriguing. Okay. Sun's a complex individual. Okay. He's incredibly intelligent. Right. Ambitious and driven. Yeah. But he's also prone to overconfidence. Okay. And can be quite impatient. Okay. He has a reputation for being a micromanager. Right. And can be ruthless in business negotiations. Right.

But he's also capable of great generosity. Okay. And has a deep-seated desire to make a positive impact on the world. So he's not just this one-dimensional business tycoon. No, not at all. He's a multifaceted character with flaws, ambitions, and a desire to leave his mark on the world. I think so. I'm curious to learn more about this personal side of Sun. Okay.

especially his vision for the future and how he plans to leverage his success to address some of the world's biggest challenges. That's a perfect segue into the next chapter of our deep dive. Okay. We'll delve into Sun's 30-year vision. Right. A fascinating, almost philosophical roadmap for the future. Okay. And explore how...

Events like the Fukushima disaster shaped his outlook and philanthropic endeavors. So we left off talking about Sun's more personal side. Yes.

And his ambitions beyond just the business world. This is where his 30 year vision comes in, right? What is that all about? Well, it was fascinating. OK. Not just a business plan, but almost like a manifesto. OK. You know, outlining his belief that technology could solve humanity's biggest challenges. Right. He talked about things like telepathy. Wow. Humans communicating with dogs. Really? Ideas that seemed pretty out there even for him.

Yeah, it definitely sounds like something out of science fiction. Yeah. But maybe that's what makes him such a successful entrepreneur. Right. He's not afraid to think big. Yeah. And imagine possibilities that others might dismiss as crazy. Right. Was this vision just a theoretical exercise? Right. Or did it translate into concrete actions?

It definitely influenced his investments and overall strategy. Okay. But there's one event that really brought his desire to use technology for good into sharp focus. Okay. The Fukushima disaster in 2011. Right. This had a profound impact on Sun.

Yeah. Both personally and in terms of his business decision. It was a devastating event for Japan. It was. And it seems like it triggered something in Sun, pushing him to take on a more active role in addressing societal issues. Exactly. His response to Fukushima was a mix of genuine compassion, a desire to be the hero, and maybe a touch of ego. Okay.

He wanted to leverage his resources and technological expertise to help Japan transition to a renewable energy future. Okay. He even proposed ambitious plans for a massive solar energy project. Right. But those ultimately didn't fully materialize.

It sounds like he was trying to apply his Silicon Valley mindset. I think so. His belief in disruption and rapid innovation to a very complex problem that required a different approach. Perhaps it highlights the challenges of translating tech world solutions to real world problems that involve social, political and environmental complexities. But it also showcases his willingness to think outside the box and challenge conventional thinking.

So we have this visionary risk taker. Yes. Who's achieved incredible success. Uh-huh. But also experienced setbacks. Right. And faced criticism for his sometimes impulsive decisions. Right. How did he navigate these challenges? Did they change his approach at all? It's interesting. Okay. Even with these challenges, his core approach remained remarkably consistent. Okay. He continued to make bold bets. Yeah. Sometimes on concessions.

companies with unconventional business models or founders with larger than life personalities. This brings us to the SoftBank Vision Fund, a $100 billion venture capital fund backed by Saudi Arabia and other investors. The Vision Fund was a huge deal in the tech world. It was. It gave Sun unprecedented firepower to invest in emerging technologies and disrupt entire industries. Exactly. What were some of the key successes and failures of this fund?

Well, the Vision Fund had some notable wins. Like Kupang, the South Korean e-commerce giant, and Didi, the Chinese ride-hailing company. But it also faced high-profile setbacks, with WeWork being the most notorious example. WeWork was this co-working space company. Yes.

Led by Adam Neumann. Right. A charismatic but controversial figure. Uh-huh. Sun seemed particularly enamored with Neumann. He did. And poured billions into WeWork. Yes. Despite concerns about its unsustainable business model. Yes.

That investment became a cautionary tale about the perils of unchecked optimism and the dangers of relying too heavily on gut instinct. It was a major blow to the Vision Fund and raised questions about Sun's judgment and risk tolerance. Beyond the financial losses, did this experience impact Sun's leadership style?

Or his approach to investing. It definitely prompted some soul searching. Okay. There were reports of internal clashes at SoftBank. Okay. There's some questioning his decision-making process. Right. He became more cautious. Right. More focused on profitability. Yeah. And less willing to bet on unproven concepts. But he never completely abandoned his core belief in the power of technology to shape the future.

So even after experiencing significant setbacks, his core convictions remained unshaken. Yes. Where does that leave him today?

What's his current focus? Okay. And how does he see the future unfolding? He's still at the helm of SoftBank. Okay. Though he's shifted his focus more towards artificial intelligence. Okay. AI. Right. He believes that AI is the next major technological revolution. Okay. And he's invested heavily in companies developing AI technologies. Yeah. He's even announced a new initiative called the Stargate Project. Stargate Project? Yeah. That sounds intriguing. It is. What's that all about?

It's a $500 billion project backed by SoftBank, OpenAI, Oracle and MGX, aimed at building new AI infrastructure in the United States. It signals his continued commitment to being at the forefront of technological innovation, even in the face of geopolitical tensions between the US and China.

This deep dive has been an incredible journey. It has. We've covered so much ground. Yeah. From his humble beginnings to his audacious rise to the top of the tech world. Uh-huh.

It's clear that Masayoshi-san is a complex and fascinating figure. He is. A visionary leader. Uh-huh. A risk taker. Yes. A survivor. Yeah. And someone who continues to push the boundaries of what's possible. Absolutely. It's been great having you. It's been fun. So thanks for joining us. Yeah, thanks for having me. And taking this deep dive with us. Of course. Into the world of Masayoshi-san and SoftBank. Always a pleasure. And we'll see you next time for another deep dive. See you then.