SoftBank Vision Fund boosted by OpenAI surge as ByteDance and Didi drag
SoftBank Group returned to profit in the December quarter as gains tied to OpenAI lifted its Vision Fund, helping counter losses across other technology bets.
The Japanese investment firm reported a sharp rise in the value of its OpenAI stake, even as investments in Coupang, Didi, and ByteDance weighed on performance.
The Vision Fund recorded a $2.4 billion gain in SoftBank’s fiscal third quarter, which ended in December.
That supported a broader turnaround in group earnings, although the company still fell short of analyst expectations.
The results underline how central OpenAI has become to SoftBank’s portfolio strategy as it deepens its exposure to artificial intelligence.
OpenAI valuation jump drives gains
SoftBank said it booked a $4.2 billion gain on its OpenAI investment during the quarter. Over the April to December period, the cumulative gain on OpenAI reached $17 billion.
The group has invested more than $30 billion in the ChatGPT developer and owns roughly 11% of the company.
The jump in valuation helped offset declines in other listed holdings, including South Korean e-commerce firm Coupang and Chinese ride-hailing app Didi.
Losses were also affected by a markdown in SoftBank’s stake in TikTok parent ByteDance.
Despite those setbacks, the Vision Fund posted a net gain for the quarter.
Net profit returns despite estimate miss
SoftBank Group reported a fiscal third-quarter net profit of 248.6 billion yen, about $1.6 billion. That marked a reversal from a loss in the same period a year earlier.
However, the result came in below analyst forecasts. Even so, the return to profitability reflects the scale of the uplift in OpenAI’s valuation and its impact on the wider portfolio.
SoftBank has positioned its Vision Fund around artificial intelligence companies it believes can become category leaders.
The strategy aims to anchor the group at the centre of AI development, with OpenAI as a flagship investment.
Funding bets and asset sales
Investors have been watching how SoftBank will finance further commitments, particularly as OpenAI remains unprofitable.
The company has been selling down other holdings to channel capital into its AI strategy.
In October, SoftBank sold its entire stake in Nvidia for $5.83 billion. Between June and December, it also disposed of $12.73 billion worth of T-Mobile stock.
The group has taken out loans backed by other assets, including chip designer Arm.
At the same time, competition in AI is intensifying, with Google and Anthropic emerging as major rivals to OpenAI.
AI computing segment takes shape
SoftBank said it has created a new reporting division called the AI Computing Segment.
This unit includes Arm, along with semiconductor businesses Graphcore and Ampere, both acquired by the group.
The segment recorded a loss of 91.8 billion yen in the nine months ending in December.
SoftBank attributed this to higher headcount and acquisition-related costs linked to Ampere.
The company views Arm and its chip assets as central to expanding into areas such as robotics, driverless cars, and data centres.
SoftBank shares rose this week after strong results from its telecommunications unit and a rally in Arm’s stock price, supporting investor sentiment.
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