SoftBank posts $1.6-billion Q3 profit, Vision Fund gains $2.4 billion on OpenAI valuation boost

SoftBank posts $1.6-billion Q3 profit, Vision Fund gains $2.4 billion on OpenAI valuation boost

Japanese investment major SoftBank Group on February 12 reported a $1.6-billion net profit for the quarter ended December 31, marking its fourth consecutive profitable quarter, as gains from its investment portfolio — led by artificial intelligence firm OpenAI — lifted results.

The Vision Fund segment recorded a $2.4-billion investment gain during the quarter, primarily driven by an increase in OpenAI’s valuation. Over the nine months through December, SoftBank booked $19.8 billion in cumulative gains tied to OpenAI, reflecting the sharp rise in the company’s fair value.

SoftBank has invested $34.6 billion in OpenAI and holds a stake of about 11 percent, making it one of the AI company’s largest investors.

Selling assets to fund AI push

The Japanese investment giant has been trimming stakes in other companies to channel capital towards OpenAI. In November last year, SoftBank sold its entire stake in Nvidia for $5.83 billion, and between June and December it sold $12.73 billion worth of T-Mobile shares.

The group has also taken out loans backed by holdings such as chip designer Arm, signalling a willingness to leverage its portfolio to fund large AI bets.

Rising competition in AI

As SoftBank doubles down on OpenAI, competition in the artificial intelligence sector is intensifying, with rivals including Google and Anthropic investing aggressively to build and scale their own models and infrastructure.

Meanwhile, Softbank is also reportedly evaluating a potential additional investment of up to $30 billion in OpenAI, which, if executed, would deepen its exposure to AI and further align its results with movements in the sector.