SoftBank's AI Bet Pays Off as Profits Double on OpenAI and Nvidia Surge

SoftBank profits more than double as AI valuations soar

Masayoshi Son's SoftBank Group said net profit more than doubled in its second quarter and announced a four-to-one stock split on Tuesday as valuations of artificial intelligence companies soar alongside growing fears of a bubble. Net profit at the AI-invested company was ¥2.5tn ($16.2bn) in the quarter to the end of September, far above analysts' expectations of ¥207bn, according to LSEG data and the ¥1.2tn recorded in the same period last year. The profits were driven by the group's tech-heavy Vision Fund, which recorded an investment gain of ¥2.8tn in the quarter from stakes in OpenAI and PayPay. Son has bet his reputation on a series of huge investments aimed at turning SoftBank into a critical player in AI, a technology he believes will shape "humanity's future". Alongside his ownership of UK chip designer Arm, Son has invested in OpenAI, Nvidia and Oracle. He most recently bought ABB's robotics arm in a deal valuing the business at $5.4bn. SoftBank's shares have more than doubled this year to over ¥22,000, driven by its investment in OpenAI, making Son Japan's richest man. The company on Tuesday said the stock split, which will take effect on January 1, will make the shares "more accessible to investors and further expand its investor base". Last month the ChatGPT maker completed a long-awaited restructuring, unlocking a second tranche of investment from SoftBank and the possibility of an eventual public listing.

SoftBank rides the AI wave as OpenAI lifts Vision Fund to $19 billion gain

The logo of Japanese company SoftBank Group is seen outside the company's headquarters in Tokyo on January 22, 2025. Japanese giant SoftBank on Tuesday posted a $19 billion gain on its Vision Fund in its fiscal second quarter ended Sept. 30. The broader Vision Fund segment factors in non-investment performance such as administrative expenses and gains and losses attributable to third-party investors. The value of the fund had risen $4.8 billion in the company's fiscal first quarter. Here's how SoftBank fared in the fiscal second quarter: Softbank is ploughing ahead with its push into artificial intelligence, investing and acquiring firms that will bolster its presence in robots and Artificial Super Intelligence (ASI). The Japanese conglomerate's stock has slumped in the past week as concerns of an AI bubble sent jitters through global markets. Nearly $50 billion in market cap was wiped out from the stock last week, marking its worst weekly loss since March 2020. However, shares are up over 140% this year as its tech investment arm has showed signs of recovery. Last month Softbank reportedly approved its final tranche of funding to complete its $30 billion investment in OpenAI. The Japanese firm's investment in the ChatGPT maker came with a caveat -- that its total investment could be slashed to as low as $20 billion if OpenAI didn't restructure into a for-profit entity by Dec. 31. The AI startup recently completed its recapitalization, cementing its structure as a nonprofit with a controlling stake in its for-profit business, which is now a public benefit corporation called OpenAI Group PBC.

AI stock boom delivers bumper quarter for Japan's SoftBank

Tokyo (AFP) - Japan's SoftBank Group reported Tuesday that net profit more than doubled in the second quarter thanks to a boom in AI-related share prices that has fuelled fears of a market bubble. The tech investment giant -- a major backer of ChatGPT-maker OpenAI -- logged a net profit of 2.5 trillion yen ($16.2 billion) in July-September, up from 1.2 trillion yen in the same period last year. SoftBank also announced it sold $5.8 billion worth of shares in US chip giant Nvidia last month, after the quarter had ended. The group's earnings often swing dramatically because it invests heavily in tech start-ups and semiconductor firms, whose stocks are volatile. In recent months optimism over the promise of AI technology has sparked a rush of multi-billion-dollar deals -- sending tech shares soaring worldwide. Wall Street's tech-rich Nasdaq index has surged 25 percent since May. But that has fed concerns of a market bubble that could eventually burst, like the dot-com boom that imploded at the turn of the millennium. Fears that AI stock valuations are too high sparked a market sell-off last week. Nvidia, whose chips are used to train and power generative AI systems, recently became the world's first company valued above $5 trillion, though its market cap has since receded to around $4.8 trillion. SoftBank did not give a reason for the Nvidia stock sale in its earnings statement. But Bloomberg News said it could reflect plans by the Japanese company's flamboyant founder Masayoshi Son to boost his own influence in the AI field. Son, 68, believes "artificial superintelligence" is on the horizon, which will herald a technological revolution with new inventions and medicine. He appeared alongside US President Donald Trump at the White House in January when SoftBank teamed up with OpenAI and cloud giant Oracle to lead the $500 billion Stargate project to build AI infrastructure in the United States. By some estimates, OpenAI has signed approximately $1 trillion worth of infrastructure deals in 2025, including a $300 billion Oracle agreement. SoftBank stock has "had a strong run" itself, said a Jefferies equity research published last month. "The recent surge appears to be driven by excitement around its exposure to OpenAI," it said. The firm has soared more than 140 percent so far in 2025. But Jefferies also listed some reasons for caution. "While OpenAI has strong consumer visibility, its share in (the) enterprise market is tiny. Its transition from non-profit to for-profit remains unresolved, and its relationship with Microsoft is still evolving," the note said. And "the competitive landscape is intense, with Google, Anthropic, Grok, and others investing heavily". SoftBank said last month it would buy Swiss-Swedish firm ABB Robotics for nearly $5.4 billion as part of its plans to develop so-called physical AI.

AI stock boom delivers bumper quarter for Japan's SoftBank

Japan's SoftBank Group reported a significant surge in net profit for the second quarter, more than doubling to 2.5 trillion yen. This boom is attributed to the soaring AI-related share prices, particularly its investment in OpenAI. The tech giant also sold $5.8 billion worth of Nvidia shares, amidst growing concerns of a market bubble fueled by AI optimism. Japan's SoftBank Group reported Tuesday that net profit more than doubled in the second quarter thanks to a boom in AI-related share prices that has fuelled fears of a market bubble. The tech investment giant -- a major backer of ChatGPT-maker OpenAI -- logged a net profit of 2.5 trillion yen ($16.2 billion) in July-September, up from 1.2 trillion yen in the same period last year. SoftBank also announced it sold $5.8 billion worth of shares in US chip giant Nvidia last month, after the quarter had ended. The group's earnings often swing dramatically because it invests heavily in tech start-ups and semiconductor firms, whose stocks are volatile. In recent months optimism over the promise of AI technology has sparked a rush of multi-billion-dollar deals -- sending tech shares soaring worldwide. Wall Street's tech-rich Nasdaq index has surged 25% since May. But that has fed concerns of a market bubble that could eventually burst, like the dot-com boom that imploded at the turn of the millennium. Fears that AI stock valuations are too high sparked a market sell-off last week. Nvidia, whose chips are used to train and power generative AI systems, recently became the world's first company valued above $5 trillion, though its market cap has since receded to around $4.8 trillion. SoftBank did not give a reason for the Nvidia stock sale in its earnings statement. But Bloomberg News said it could reflect plans by the Japanese company's flamboyant founder Masayoshi Son to boost his own influence in the AI field. Son, 68, believes "artificial superintelligence" is on the horizon, which will herald a technological revolution with new inventions and medicine. He appeared alongside US President Donald Trump at the White House in January when SoftBank teamed up with OpenAI and cloud giant Oracle to lead the $500 billion Stargate project to build AI infrastructure in the United States. By some estimates, OpenAI has signed approximately $1 trillion worth of infrastructure deals in 2025, including a $300 billion Oracle agreement. SoftBank stock has "had a strong run" itself, said a Jefferies equity research published last month. "The recent surge appears to be driven by excitement around its exposure to OpenAI," it said. The firm has soared more than 140% so far in 2025. But Jefferies also listed some reasons for caution. "While OpenAI has strong consumer visibility, its share in (the) enterprise market is tiny. Its transition from non-profit to for-profit remains unresolved, and its relationship with Microsoft is still evolving," the note said. And "the competitive landscape is intense, with Google, Anthropic, Grok, and others investing heavily". SoftBank said last month it would buy Swiss-Swedish firm ABB Robotics for nearly $5.4 billion as part of its plans to develop so-called physical AI.

SoftBank sells entire Nvidia stake for $5.8 billion in surprise move

SoftBank sold its Nvidia stake for $5.8 billion, contributing to a surprise ¥2.5 trillion net income. The company is aggressively investing in AI, with stakes in OpenAI and Oracle, and plans for a $30 billion investment in OpenAI and a $1 trillion AI manufacturing hub. Despite strong performance, concerns remain about AI company valuations and financing new ventures. SoftBank Group Corp. sold its entire stake in Nvidia Corp., pocketing $5.8 billion ahead of a rash of planned investments by founder Masayoshi Son to build his own sphere of influence supporting artificial intelligence. The Tokyo-based company had raised its stake in Nvidia to about $3 billion by the end of March. That stake and a windfall at the Vision Fund startup investment unit helped SoftBank report a surprise net income of ¥2.5 trillion ($16.2 billion) in its fiscal second quarter, far outrunning the average of analyst estimates of ¥418.2 billion. On Tuesday, SoftBank also announced a 4-for-1 stock split that will take place Jan. 1. Son's company now boasts a portfolio that includes some of the world's most sought-after names in AI: OpenAI and Oracle Corp. Those stakes boosted SoftBank's paper gains and helped drive a 78% surge in its share price over the three months ending in September -- its best such performance since the December quarter of 2005. The number of bets from which SoftBank is successfully recouping its investment has increased, "so we raise our forecasts," Citigroup analyst Keiichi Yoneshima wrote in a note ahead of the earnings release. The analyst set his target price for SoftBank's stock at ¥27,100, linking his calculations with OpenAI's valuation and assuming a future valuation range of $500 billion to $1 trillion for the ChatGPT operator. Son, 68, is aggressively seeking to capitalize on booming investment in AI and chips, even as he scales back other investments. The SoftBank founder's ambition has fueled initiatives including the Stargate data center rollout and a planned $30 billion investment in OpenAI. Son is also courting Taiwan Semiconductor Manufacturing Co. and others about taking part in a $1 trillion AI manufacturing hub in Arizona. SoftBank even explored a takeover of US chipmaker Marvell Technology Inc. earlier this year. The challenge will be to balance the financing behind the new investments, including roughly $20 billion for OpenAI and $6.5 billion for the planned acquisition of chip designer Ampere Computing LLC. Concerns also persist about the high valuations propping up AI companies and their capital spending, and who will ultimately benefit from the big data centers and other infrastructure under construction. "The simple trade was to buy SoftBank for cheap exposure to Arm shares and a broader AI and tech mix. That idea has more than delivered - the stock's more than doubled, far outpacing the modest rise in NAV," according to a Finimize Research note published on Smartkarma ahead of the earnings release, referring to SoftBank's net asset value. "But now the discount's mostly closed, so SoftBank isn't a 'cheap' way in anymore. So on that basis, it's likely a good time to sell and take your profits," it said.

Softbank Group Q2 profit blows past expectations; sells Nvidia stake for $5.8 bln By Investing.com

Investing.com-- SoftBank Group Corp. (TYO:9984) clocked a much stronger-than-expected fiscal second quarter profit on Tuesday, as the Japanese tech conglomerate continued to reap strong returns from its aggressive bets on artificial intelligence. The company said it had sold all of its shares in NVIDIA Corporation (NASDAQ:NVDA)- about 32.1 million shares- for $5.83 billion in October. The sale was not reflected in Softbank's second-quarter earnings, and the company did not disclose a rationale for the sale. Softbank posted a net profit attributable of 2.502 trillion yen ($16.3 billion) for the July-September quarter, much higher than Bloomberg estimates of 418.23 billion yen. Softbank's profit also more than doubled from the 1.179 trillion yen seen last year. The strong earnings were fueled chiefly by strong gains on investments at the company's flagship Vision funds, the second of which continued to carry out its investment commitments in ChatGPT maker OpenAI during the quarter. Gain on investments at SoftBank's Vision Funds surged to 2.755 trillion yen in the September quarter from 567.4 billion yen last year. The conglomerate has ramped up its investments in AI and tangential technologies over the past three years, which have earned it strong returns in recent quarters. Part of this investment is also a $500 billion venture with OpenAI to build more AI infrastructure in the United States. Softbank also committed to invest $40 billion in OpenAI earlier this year, and carried out part of this investment through its Vision Funds in the September quarter. Softbank said it will conduct a four-for-one ordinary share split, effective January 1, aimed at making its shares more accessible. Softbank's stock hit a series of record highs in October, before falling sharply.

SoftBank Group Net Profit Doubles, Sells Nvidia Stake for $5.8 Billion -- Update

SoftBank Group reported a more than doubling in quarterly net profit, thanks to billions of dollars of gains from its OpenAI investment, and said it sold its entire stake in Nvidia for $5.8 billion last month. The Japanese technology investment company on Tuesday reported net profit of 2.502 trillion yen, equivalent to $16.23 billion, for the three months ended September, up sharply from Y1.180 trillion a year earlier. That beat the Y480.00 billion estimate in a poll of analysts by data provider Visible Alpha. SoftBank also said the company and its asset-management subsidiary sold all their shares in Nvidia for $5.83 billion in October. It said it booked gains of Y2.157 trillion from its investment in the ChatGPT maker. SoftBank Group has been leading an investment of up to $40 billion in OpenAI, with plans to syndicate out $10 billion to co-investors. On Tuesday it said co-investors had committed to the entire syndication amount, and that it will invest an additional $22.5 billion in OpenAI through its Vision Fund 2 in December. OpenAI has recently converted to a more traditional corporate structure, a move that will make it easier for the ChatGPT maker to raise money and attract talent. In September, OpenAI announced five new data-center sites across the U.S., as part of its $500 billion Stargate project with SoftBank and Oracle. SoftBank and OpenAI have teamed up to offer AI services, initially targeting Japanese businesses to lay the groundwork for potential expansion worldwide. The Tokyo-based company, led by billionaire Masayoshi Son, has been making bolder investments in artificial intelligence over the past year, reversing a yearslong defensive strategy. SoftBank Group in October agreed to acquire Swiss industrial giant ABB's robotics business for $5.4 billion, aiming to combine the potential of AI with robots. In August, the Japanese company's payments app operator PayPay submitted paperwork for an initial public offering in the U.S., a move that could add to SoftBank's coffers as it pours billions into AI-related investments. Last week, U.K. chip-design unit Arm Holdings reported a more than doubling in fiscal second-quarter profit as revenue jumped, driven by demand for its compute platform. SoftBank Group's shares have more than doubled this year, driven by expectations the companies it has invested in will benefit from broader use of AI in the global economy. The stock has also been boosted by hopes that Japan's new Prime Minister Sanae Takaichi, a supporter of AI and other high-tech sectors, will take steps to promote the use of the technology.

SoftBank Group's Quarterly Net Profit Doubles on OpenAI Investment

SoftBank Group's quarterly net profit more than doubled thanks to billions of dollars of gains from its investment in OpenAI. The Japanese technology investment company on Tuesday reported net profit of 2.502 trillion yen, equivalent to $16.23 billion, for the three months ended September, up sharply from Y1.180 trillion a year earlier. That beat the Y480.00 billion estimate in a poll of analysts by data provider Visible Alpha. SoftBank said it booked gains of Y2.157 trillion from its investment in the ChatGPT maker. SoftBank Group has been leading an investment of up to $40 billion in OpenAI, with plans to syndicate out $10 billion to co-investors. On Tuesday it said co-investors had committed to the entire syndication amount, and that it will invest an additional $22.5 billion in OpenAI through its Vision Fund 2 in December. OpenAI has recently converted to a more traditional corporate structure, a move that will make it easier for the ChatGPT maker to raise money and attract talent. In September, OpenAI announced five new data-center sites across the U.S., as part of its $500 billion Stargate project with SoftBank and Oracle. SoftBank and OpenAI have teamed up to offer AI services, initially targeting Japanese businesses to lay the groundwork for potential expansion worldwide. The Tokyo-based company, led by billionaire Masayoshi Son, has been making bolder investments in artificial intelligence over the past year, reversing a yearslong defensive strategy. SoftBank Group in October agreed to acquire Swiss industrial giant ABB's robotics business for $5.4 billion, aiming to combine the potential of AI with robots. In August, the Japanese company's payments app operator PayPay submitted paperwork for an initial public offering in the U.S., a move that could add to SoftBank's coffers as it pours billions into AI-related investments. Last week, U.K. chip-design unit Arm Holdings reported a more than doubling in fiscal second-quarter profit as revenue jumped, driven by demand for its compute platform. SoftBank Group's shares have more than doubled this year, driven by expectations the companies it has invested in will benefit from broader use of AI in the global economy. The stock has also been boosted by hopes that Japan's new Prime Minister Sanae Takaichi, a supporter of AI and other high-tech sectors, will take steps to promote the use of the technology. Write to Kosaku Narioka at [email protected]

SoftBank profit more than doubles to $16.6 billion on OpenAI gains

TOKYO (Reuters) -Japan's SoftBank Group reported on Tuesday its second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), driven by valuation gains in its holdings of OpenAI. Three analysts surveyed by LSEG had estimated on average a net profit of 207 billion yen for the July-September quarter. The company's profit also compared with the 1.18 trillion yen profit it made in the same period of the previous year. SoftBank's Vision Fund unit posted an investment gain of 3.5 trillion yen, primarily deriving from the group's holding in ChatGPT creator OpenAI which totalled 2.16 trillion yen for the quarter. The results coincide with a bull run in technology-related stocks that has sent SoftBank's share price to record highs. As the wave of investment in artificial intelligence infrastructure such as data centers continues apace and frontrunners in AI development such as OpenAI project rapid growth, SoftBank has been a major beneficiary. Nevertheless there are growing concerns among investors about an "AI bubble", whereby the enormous sums committed to capital investment by leading firms may not generate the high profits to justify the investments. OpenAI's valuation has risen steadily and sharply through the year. In March SoftBank agreed to lead a funding round of up to $40 billion in OpenAI at a valuation of $300 billion. In October, a source told Reuters SoftBank was among a consortium of investors acquiring $6.6 billion worth of shares from OpenAI employees at a higher valuation of $500 billion. SoftBank is in the midst of massive AI-related investments, its most ambitious investments since the launch of the Vision Fund vehicles in 2017 and 2019, and it is in need of funding. In October, it sold 32.1 million shares of Nvidia, including those held by the asset management subsidiary, for $5.83 billion. Since the start of April it has issued bonds in three currencies worth 620 billion yen, $2.2 billion and 1.7 billion euros, respectively. It also took out a bridge loan of $8.5 billion for its investment in OpenAI and arranged a $6.5 billion bridge loan for its acquisition of semiconductor design company Ampere, which it has not yet drawn. SoftBank founder and chief executive Masayoshi Son is experienced in making leveraged bets on what he sees as transformative technologies, but his track record is mixed. While an early bet on Chinese e-commerce site Alibaba proved lucrative, other bets have gone awry, such as shared office provider WeWork. ($1 = 150.7800 yen) (Reporting by Anton Bridge; Editing by Tom Hogue and Muralikumar Anantharaman)

SoftBank Group posts $16.6 billion Q2 profit on OpenAI gains

TOKYO (Reuters) -Japan's SoftBank Group reported on Tuesday a net profit of 2.5 trillion yen ($16.6 billion) for the July-September quarter, its third consecutive quarter of profits. That compared with a net profit of 1.18 trillion yen in the same period of the previous year. Three analysts surveyed by LSEG had estimated on average a net profit of 207 billion yen for the current year's quarter. SoftBank's Vision Fund unit posted an investment gain of 3.5 trillion yen, primarily deriving from the group's holding in ChatGPT creator OpenAI which totalled 2.16 trillion yen for the quarter. The results coincide with a bull run in technology-related stocks that has sent SoftBank's share price to record highs. As the wave of investment in artificial intelligence infrastructure such as data centers continues apace and frontrunners in AI development such as OpenAI project rapid growth, SoftBank has been a major beneficiary. Nevertheless there are growing concerns among investors of an "AI bubble", whereby the enormous sums committed to capital investment by leading firms may not generate the high profits to justify the investments. ($1 = 150.7800 yen) (Reporting by Anton Bridge; Editing by Tom Hogue and Muralikumar Anantharaman)

SoftBank's OpenAI wager in focus as analysts upgrade share price target

TOKYO (Reuters) -Technology investor SoftBank Group reports second quarter earnings results on Tuesday in the midst of feverish investment in artificial intelligence that has sent its share price soaring. But SoftBank's belief in AI comes with risks amid growing concern of an "AI bubble" that could see SoftBank overextended in companies at eye-watering valuations, repeating some of its debt-fuelled investment mistakes of the past. For now, analysts have re-rated SoftBank's share price target up as the wave of investment in artificial intelligence infrastructure such as data centers continues apace and the frontrunners in AI development, such as SoftBank investee OpenAI, project rapid growth. In April, SoftBank said it would lead a funding round of up to $40 billion in OpenAI, developer of ChatGPT, at a valuation of $300 billion. In October, a source told Reuters SoftBank was among a consortium of investors acquiring $6.6 billion worth of shares from OpenAI employees at a yet higher valuation of $500 billion. SoftBank's shares closed at a record 27,315 yen per share in late October, more than quadruple their price in early April, although they have pared some gains since, closing at 22,255 yen per share on Monday. The share price now appears to be priced in relation to SoftBank's exposure to OpenAI, after years of tracking shares of Alibaba, Jefferies analyst Atul Goyal wrote in a note. SoftBank no longer has a meaningful stake in Alibaba. While retail investors view SoftBank as a higher risk and volatility play on artificial intelligence and OpenAI, institutional investors "recognise the momentum but remain cautious about extrapolating OpenAI's potential," Goyal wrote. 'ARTIFICIAL SUPER INTELLIGENCE' SoftBank founder and Chief Executive Masayoshi Son said in June that he was "all in" on OpenAI in a bid to become the biggest platform provider for "artificial super intelligence" within the next 10 years. But whether OpenAI and other artificial intelligence firms can generate the profits worthy of such valuations remains to be seen. Losses are mounting at OpenAI, sources told Reuters in October. Separately, in September a source told Reuters that SoftBank's plans to set up a joint venture with OpenAI to bring artificial intelligence services to corporate customers in Japan were significantly behind schedule. Son has form in both making and losing fortunes. He rode the boom and bust of the dotcom bubble in 2000, while SoftBank's Vision Fund investment vehicles, launched in 2017 and 2019 and totalling over $170 billion in committed capital, have barely broken even since inception. SoftBank is expected to post a net profit of 207 billion yen ($1.37 billion) in the July-September quarter, according to the average estimate of three analysts polled by LSEG, although its earnings are known for large and hard-to-predict swings. (Reporting by Anton Bridge; Editing by Susan Fenton)