SoftBank posts $12 billion profit on OpenAI gains

SoftBank Group reported a net profit of 1.9 trillion yen ($12.05 billion) for the January–March quarter on Wednesday, marking a sharp increase from 517 billion yen in the same period a year earlier.

The Japanese technology investor has now posted a profit for five consecutive quarters, driven largely by the rising value of its stake in OpenAI, News.Az reports, citing Reuters.

The company’s Vision Fund unit recorded an investment gain of 3.1 trillion yen during the quarter, with performance boosted by multiple funding rounds that increased the valuation of the ChatGPT-maker.

SoftBank’s strong results highlight how its exposure to OpenAI has become the key driver of earnings growth in recent quarters.

The group has pledged an additional $30 billion investment in OpenAI through 2026, bringing its total commitment to around $64.4 billion for an estimated 13% stake.

To fund its investments, SoftBank has sold stakes in companies including T-Mobile US and Nvidia, and has also raised capital through bonds and loans backed by assets such as chip designer Arm and its domestic telecom arm SoftBank Corp.

The company said the performance of its investment portfolio, particularly in artificial intelligence-related assets, remains the main factor behind its earnings momentum.

News.Az 

By Nijat Babayev