TOKYO – Japanese technology conglomerate SoftBank Group Corp. reported a staggering 124% increase in quarterly profit, fueled by robust valuations in tech startups and resilient demand for artificial intelligence (AI). The company announced a net income of ¥517.18 billion ($3.5 billion) for its fiscal fourth quarter, driven by gains from its Vision Fund and investments in companies like ByteDance and Didi Global. Bloomberg reported that this financial upswing is paving the way for SoftBank’s ambitious AI initiatives, including a reaffirmed commitment to invest up to $30 billion in OpenAI, the creator of ChatGPT.
SoftBank’s Vision Fund, a cornerstone of its tech investment strategy, swung to a profit of ¥26.1 billion, a significant turnaround attributed to the rising valuations of its portfolio companies. This marks the conglomerate’s first annual profit in four years, with a reported ¥1.1 trillion ($7.7 billion) net profit for the fiscal year ending March 2025, according to Nikkei Asia. The company’s strategic divestitures, including gains from selling T-Mobile shares, further bolstered its financial performance.
Must Read: Trump’s Middle East Visit Highlights Economic Deals and Regional Security
A key highlight of SoftBank’s recent moves is its deepening partnership with OpenAI. On Tuesday, the company endorsed OpenAI’s revised restructuring plan, which maintains nonprofit control while transitioning its for-profit arm into a public benefit corporation. SoftBank’s CFO, Yoshimitsu Goto, stated during an earnings call that the plan aligns with expectations, emphasizing that “nothing has really changed” in their commitment to OpenAI’s $30 billion investment, contingent on the restructuring’s completion by year-end. This endorsement, reported by CNBC, underscores SoftBank’s confidence in OpenAI’s mission to advance artificial general intelligence (AGI).
Must Read: Anita Anand Appointed Canada’s New Foreign Minister in Major Cabinet Reshuffle
However, challenges remain. OpenAI’s restructuring awaits approval from Microsoft, a major investor, which has yet to sign off, according to Bloomberg. Additionally, SoftBank’s broader AI ambitions, including the $100 billion Stargate project with OpenAI to build AI data centers, face hurdles due to economic uncertainties and tariff concerns in the U.S., as noted by Bloomberg.
SoftBank’s CEO, Masayoshi Son, has positioned OpenAI as the company’s most critical partner in achieving AGI and, ultimately, artificial superintelligence (ASI). The conglomerate’s $40 billion funding round in March, which valued OpenAI at $300 billion, marked the largest private tech deal on record, per Fox Business. This financial firepower is set to enhance OpenAI’s computing infrastructure and accelerate AI research, despite criticisms from figures like Elon Musk and former OpenAI employees over its governance changes.
As SoftBank rides the wave of AI-driven growth, its robust profit growth and strategic investments signal a bold bet on the future of technology. The Interview Times will continue to monitor how SoftBank’s financial success and OpenAI partnership shape the global AI landscape.