BUSINESS – SoftBank Group reported a net loss of 369.2 billion yen ($2.4 billion) for the October-December quarter, mainly due to declining valuations of tech investments such as Coupang, Didi Global, and AutoStore Holdings. This performance contrasts sharply with a 950 billion yen profit in the same period last year and falls below analysts’ expectations of a 234 billion yen profit.
The company’s Vision Fund unit posted an investment loss of 352.7 billion yen, breaking a two-quarter streak of profitability. Since its launch in 2017, Vision Fund 1 has gained $21.6 billion, whereas Vision Fund 2, started in 2019, has recorded a loss of $22.2 billion.
Despite the setback, SoftBank’s founder Masayoshi Son is shifting the company’s focus towards artificial intelligence (AI). The firm is reportedly in talks to invest up to $40 billion in OpenAI, the creator of ChatGPT, and may bring in other investors to share the funding. Additionally, SoftBank has pledged $15 billion for Stargate, a joint venture with OpenAI and Oracle, aimed at building AI data centers in the U.S. This initiative has gained backing from former U.S. President Donald Trump.
However, SoftBank’s cash reserves have dropped from 6.2 trillion yen in March to 4.7 trillion yen in December. Despite this, total returns, including share gains and dividends, have risen by over 11% in the past year, outperforming the Nikkei 225 index.
CFO Yoshimitsu Goto noted that while investments slowed in Q3, activity is expected to increase in 2025, especially with the Stargate project. The company remains focused on growing its net asset value through AI investments and partnerships.
