SoftBank Swings to Profit on AI Bets
What happened
SoftBank Group reported a return to profitability in the fourth quarter of 2025, posting a net income of ¥248.6 billion. The turnaround was driven by a $19.8 billion gain from its AI-focused investments, including stakes in OpenAI and its Vision Fund portfolio companies. The strong performance and rising earnings per share are prompting analysts to re-evaluate the long-term investment case for the Japanese technology conglomerate.
Why it matters
- This current profitability marks a sharp reversal from a period of significant losses, including a record $32 billion loss for the Vision Fund in the fiscal year ending March 2023. - The positive result is heavily dependent on the surging valuation of a single investment, OpenAI, which has successfully masked valuation losses in other portfolio companies such as Coupang and Didi. - Under CEO Masayoshi Son, the company has shifted from a "defense mode" to an AI-focused "offense mode," increasing AI-related assets from 18% to over 60% of the firm's net asset value in the past three years. - SoftBank's total investment in OpenAI now stands at $34.6 billion, securing an ownership stake of approximately 11% after completing a $22.5 billion follow-on funding round in December 2025. - The company's AI strategy aims for vertical integration, extending beyond software to include the $6.5 billion acquisition of U.S. chip designer Ampere Computing and a pending $5.4 billion purchase of ABB's robotics business. - To finance this strategic pivot to AI, SoftBank has been liquidating other major holdings, including the sale of its Nvidia stake for $5.8 billion and the divestment of $12.73 billion in T-Mobile shares. - While profitable, the quarterly result fell significantly below consensus, with the reported net income being about one-third of the ¥857 billion that analysts had, on average, forecasted. - Chief Financial Officer Yoshimitsu Goto noted that the gains were not solely from OpenAI but also from other core AI holdings, specifically highlighting the performance of semiconductor designer Arm.
Key numbers
- SoftBank Group reported a return to profitability in the fourth quarter of 2025, posting a net income of ¥248.6 billion.
- The turnaround was driven by a $19.8 billion gain from its AI-focused investments, including stakes in OpenAI and its Vision Fund portfolio companies.
- - This current profitability marks a sharp reversal from a period of significant losses, including a record $32 billion loss for the Vision Fund in the fiscal year ending March 2023.
- Under CEO Masayoshi Son, the company has shifted from a "defense mode" to an AI-focused "offense mode," increasing AI-related assets from 18% to over 60% of the firm's net asset value in the past three years.
What happens next
- The company's AI strategy aims for vertical integration, extending beyond software to include the $6.5 billion acquisition of U.S.
Quick answers
What happened in SoftBank Swings to Profit on AI Bets?
SoftBank Group reported a return to profitability in the fourth quarter of 2025, posting a net income of ¥248.6 billion. The turnaround was driven by a $19.8 billion gain from its AI-focused investments, including stakes in OpenAI and its Vision Fund portfolio companies. The strong performance and rising earnings per share are prompting analysts to re-evaluate the long-term investment case for the Japanese technology conglomerate.
Why does SoftBank Swings to Profit on AI Bets matter?
This current profitability marks a sharp reversal from a period of significant losses, including a record $32 billion loss for the Vision Fund in the fiscal year ending March 2023. The positive result is heavily dependent on the surging valuation of a single investment, OpenAI, which has successfully masked valuation losses in other portfolio companies such as Coupang and Didi. Under CEO Masayoshi Son, the company has shifted from a "defense mode" to an AI-focused "offense mode," increasing AI-related assets from 18% to over 60% of the firm's net asset value in the past three years. SoftBank's total investment in OpenAI now stands at $34.6 billion, securing an ownership stake of approximately 11% after completing a $22.5 billion follow-on funding round in December 2025. The company's AI strategy aims for vertical integration, extending beyond software to include the $6.5 billion acquisition of U.S. chip designer Ampere Computing and a pending $5.4 billion purchase of ABB's robotics business. To finance this strategic pivot to AI, SoftBank has been liquidating other major holdings, including the sale of its Nvidia stake for $5.8 billion and the divestment of $12.73 billion in T-Mobile shares. While profitable, the quarterly result fell significantly below consensus, with the reported net income being about one-third of the ¥857 billion that analysts had, on average, forecasted. Chief Financial Officer Yoshimitsu Goto noted that the gains were not solely from OpenAI but also from other core AI holdings, specifically highlighting the performance of semiconductor designer Arm.
