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9mo ago

SoftBank Reports $2.4 Billion Quarterly Loss Following AI Investment Announcement

The technology conglomerate's Vision Fund saw a sharp decline in valuations, marking its first loss in three quarters.

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The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025. REUTERS/Issei Kato/File Photo
Masayoshi Son, the SoftBank founder, at an AI forum last week
US President Donald Trump announces the Stargate Project – accompanied, from left, by Oracle chairman Larry Ellison, SoftBank Group Corp chief executive Masayoshi Son and OpenAI chief executive Sam Altman – in a press conference at the White House on January 21, 2025. Photo: TNS

Overview

  • SoftBank Group posted a net loss of 369.2 billion yen ($2.4 billion) for the fiscal third quarter, surprising analysts who had forecast a profit.
  • The loss was driven by a 352.7 billion yen decline in the company's Vision Fund investments, reversing two consecutive quarters of profitability for the unit.
  • Quarterly revenue came in at 1.83 trillion yen ($11.9 billion), slightly below analysts' expectations of 1.84 trillion yen.
  • The earnings report follows SoftBank's announcement of a $500 billion AI initiative, Stargate, in collaboration with President Donald Trump, OpenAI, and Oracle.
  • SoftBank continues to reposition itself toward artificial intelligence, with reports suggesting a near-finalized $40 billion investment in OpenAI at a $260 billion valuation.