SoftBank Revels in $2.9B Profits, Thanks to AI-Driven Turnaround
Japanese technology conglomerate, SoftBank Group Corp., reported an impressive 421.8 billion yen ($2.9 billion) profit for the April-June quarter. This marks a significant shift from a 174 billion yen loss during the same period last year. The resurgence is primarily attributed to the artificial intelligence boom, which has significantly benefited the company’s investments in AI-centric firms like Nvidia and OpenAI.
“The era is definitely AI, and we are focused on AI,” stated Yoshimitsu Goto, a senior executive at SoftBank. He underscored the company’s strategic shift towards AI. The company’s Vision Fund, a major investor in AI ventures, recorded substantial gains during the quarter, thanks to the global surge in AI stocks.
SoftBank’s quarterly sales escalated by 7% to 1.8 trillion yen ($12 billion). The company also reaped benefits from asset sales, including $3 billion worth of T-Mobile US stock. Founder Masayoshi Son has identified OpenAI as the company’s most crucial partner. SoftBank is planning to invest an additional $40 billion in ChatGPT’s creator.