SoftBank Group has reported a fiscal third-quarter loss of ¥369.2 billion ($2.4 billion), primarily due to significant declines in its Vision Funds’ investments, including companies like Coupang and Didi Global. This contrasts sharply with a ¥950 billion profit in the same period the previous year and falls short of analysts’ expectations of a ¥234 billion profit.
Despite these setbacks, founder Masayoshi Son is intensifying the company’s focus on artificial intelligence (AI). SoftBank is spearheading the ambitious Stargate project, in collaboration with partners such as OpenAI, Oracle, Microsoft, and Nvidia. The initiative aims to invest an initial $15 billion to $20 billion in AI infrastructure, with potential total investments reaching $500 billion over four years. Additionally, SoftBank plans to make a substantial investment in OpenAI as part of a larger funding round.
Son envisions a significant role for SoftBank in AI across various sectors, including power generation, robotics, and data centers. He also sees potential in SoftBank’s chip designer, Arm, for producing AI-specific chips.
While the recent financial results highlight the volatility inherent in SoftBank’s investment strategy, the company’s renewed commitment to AI reflects its belief in the transformative potential of this technology. The success of these initiatives is crucial for restoring investor confidence and achieving sustainable growth.