SoftBank Profit Doubles to $16.6 Billion on Soaring OpenAI Valuation
SoftBank Group reported on Tuesday that its second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), driven largely by massive valuation gains in its OpenAI holdings.
Analysts surveyed by LSEG had expected an average profit of just 207 billion yen for the July–September quarter, highlighting the magnitude of SoftBank’s performance. The results also marked a sharp increase from the 1.18 trillion yen profit posted during the same period last year.
Vision Fund Reaps Major Gains from OpenAI Investment
SoftBank’s Vision Fund unit recorded an investment gain of 3.5 trillion yen, with the majority stemming from the company’s stake in ChatGPT creator OpenAI, which contributed 2.16 trillion yen to quarterly earnings.
The surge in profit aligns with a broader technology sector rally, which has propelled SoftBank’s share price to record highs. The group has become one of the biggest beneficiaries of global enthusiasm for artificial intelligence and AI infrastructure, such as data centers and cloud computing systems.
AI Boom Spurs Massive SoftBank Investments
The ongoing boom in AI development has encouraged SoftBank to ramp up its investments, marking its most ambitious spending phase since launching the Vision Fund vehicles in 2017 and 2019.
In March, SoftBank led a funding round of up to $40 billion for OpenAI, valuing the company at $300 billion. By October, the valuation had reportedly climbed to $500 billion, as SoftBank joined a consortium buying $6.6 billion worth of shares from OpenAI employees.
Despite this momentum, analysts have raised concerns about a potential “AI bubble,” warning that the enormous sums invested in artificial intelligence infrastructure may not yield profits strong enough to justify such valuations.
SoftBank Raises Cash Through Asset Sales and Debt
To fund its aggressive AI strategy, SoftBank has been raising capital through asset sales and bond issues. In October, the company sold 32.1 million shares of Nvidia—including those held by its asset management arm—for $5.83 billion.
Since April, SoftBank has issued bonds in three currencies worth 620 billion yen, $2.2 billion, and 1.7 billion euros. It has also secured two large bridge loans: one worth $8.5 billion for its OpenAI investment and another worth $6.5 billion for its planned acquisition of semiconductor designer Ampere.
Masayoshi Son’s Bold AI Vision and Mixed Track Record
SoftBank founder and CEO Masayoshi Son is known for his bold, leveraged bets on transformative technologies. His early investment in Alibaba became one of the most profitable in corporate history, but other ventures, such as WeWork, have struggled.
Despite mixed outcomes, Son continues to position SoftBank at the center of the AI revolution, betting that its long-term investments in OpenAI and semiconductor innovation will define the next major growth cycle.
(1 USD = 150.78 yen)
