SoftBank Group recorded a net profit of JPY 248.6 billion (USD 1.6 billion) for the quarter ending in December, boosted by significant returns from its investment in OpenAI. The latest report marks the company’s fourth straight profitable quarter, following a loss of JPY 369 billion in the same period a year prior.
Book gains generated from the surge in OpenAI’s valuation were central to SoftBank’s results, producing JPY 2.8 trillion in paper profits. This performance largely counteracted volatility seen in other areas of SoftBank’s portfolio. As of December, the company had committed over USD 30 billion in OpenAI, building an 11% stake and establishing SoftBank as a major shareholder in the artificial intelligence company behind ChatGPT.
SoftBank has been relying on divestments and leveraging assets—such as reducing holdings in Nvidia and T-Mobile by USD 5.8 billion and USD 12.73 billion, respectively—to support its investments in the fast-changing AI sector. Investor attention has centered on the group’s capability to continue financing OpenAI development, especially since the AI company remains unprofitable.
Additionally, SoftBank expanded its borrowing capacity against shares of its telecommunications subsidiary in December, raising the limit to JPY 1.2 trillion from JPY 800 billion. Meanwhile, growing costs for operating and training OpenAI’s models, coupled with mounting competition from other technology leaders like Alphabet, have presented new operational challenges for the AI company.
