This is the first time on record that the technology giant has invested in a venture capital fund
Published By: Ken Bock on January 5, 2017 09:49 am EST
Apple Inc. (NASDAQ:AAPL) has confirmed its $1 billion investment in the vision fund of SoftBank. This will be a contribution to the Bank’s $100 billion technology fund. The fund is expected to include Foxconn Technology Group and the head office of Oracle Corp., Chairman Larry Ellison of the Japanese telecommunication giant said on Wednesday.
Apple has announced separately that it plans to invest in the technology fund. Kristin Huguet, a spokeswoman for Apple, said: “We believe their new fund will speed the development of technologies which may be strategically important to Apple.” She further said that the technology giant has worked with SoftBank for many years.
Apple has joined the list of investors which includes Qualcomm and the government of Saudia Arabia, who plan to invest $45 billion for a 5-year period, according to SoftBank. It also added its own investment of $25 billion in its fund.
The fund manages to bring in various companies who compete with each other and have overlapping interests. Earlier in 2008, SoftBank went into a deal with Apple to become the exclusive iPhone seller in Japan.
The $1 billion investment by Apple is quoted as unusual by many analysts. The technology giant is not known to invest in such ventures. Joining the fund will help the company as it looks to bring in new technologies into its devices and to ensure its smartwatches become compatible with other devices.
In 2015, Foxconn invested a sum of $118 million in the robotics venture of SoftBank. It began producing a robot called “Pepper” which is known as the first robot capable of understanding human emotions.
Apple stock price fell in the last session by 0.11% as it closed at a price of $116.02. It is traded in the red in after-market hours, specifically at 7:58 PM EST.