SoftBank Group Corp. reported a net profit of 2.5 trillion yen ($16.6 billion) for the July–September quarter, its third consecutive profitable period, driven by a surge in the value of its Vision Fund investments.
Separately, the company also said it has sold its entire stake or 32.1 million shares in Nvidia for $5.83 billion. It also sold off part of its stake in T-Mobile for $9.17 billion.
SoftBank’s quarterly profit figure far exceeded analysts’ expectations of 207 billion yen, according to LSEG estimates, underscoring the impact of the company’s aggressive push into artificial intelligence.
The profit compares with 1.18 trillion yen a year earlier, marking a sharp turnaround for the tech conglomerate that has spent the past few years recovering from a series of investment missteps.
Vision Fund reaps massive gains from OpenAI
SoftBank’s Vision Fund unit posted investment gains of 3.5 trillion yen, with 2.16 trillion yen coming from its holdings in OpenAI, the creator of ChatGPT.
The broader Vision Fund segment, which also includes administrative and other non-investment performance, reported a $19 billion gain for the quarter ended September 30.
The value of the fund had already risen $4.8 billion in the previous quarter, signaling sustained momentum as investor enthusiasm for artificial intelligence remains strong.
SoftBank has been steadily expanding its AI footprint, investing in companies working on robotics and what founder Masayoshi Son calls “Artificial Super Intelligence,” or ASI.
The billionaire 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 decade.
Riding the AI wave amid market volatility
The stellar quarterly results come despite recent turbulence in SoftBank’s share price.
The stock shed nearly $50 billion in market capitalization last week amid a global sell-off in AI-related shares, its steepest decline since March 2020.
Even so, SoftBank shares are still up more than 140% this year, buoyed by optimism surrounding its AI bets.
In late October, the stock reached a record 27,315 yen per share before easing to 22,255 yen 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 BABA,” Jefferies analyst Atul Goyal wrote in a note.
SoftBank no longer has a meaningful stake in Alibaba.
SoftBank’s relationship with OpenAI becomes central to its strategy
SoftBank’s deepening relationship with OpenAI has become central to its strategy.
The Japanese firm reportedly approved the final tranche of its $30 billion investment in OpenAI last month, though the total amount could be cut to $20 billion if the AI company fails to fully transition to a for-profit structure by the end of the year.
OpenAI recently finalized a recapitalization that solidified its nonprofit oversight and converted its for-profit business into a public benefit corporation called OpenAI Group PBC.
However, the company continues to face rising losses, raising questions about whether the AI sector can sustain its current valuations.
Analysts warn of overexuberance
While analysts have raised SoftBank’s price targets, some caution that the rapid expansion of AI infrastructure spending may not deliver the expected profits.
Concerns of an “AI bubble” are growing as investors pour unprecedented capital into data centers and computing power.
“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.
For now, SoftBank remains one of the biggest beneficiaries of the AI boom — but the durability of that boom, and whether Son’s bet on artificial super intelligence will truly pay off, remains to be seen.
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