SoftBank Returns to Profitability
SoftBank Group reported a return to profitability in its latest quarterly results, driven by its investment in OpenAI. The technology investment firm also announced that its fintech arm, PayPay, is preparing for a Nasdaq listing. The results have sparked debate among analysts about the sustainability of the company's high-risk, AI-focused strategy amid market volatility.
- The recent profitability marks a significant turnaround for SoftBank's Vision Fund, which reported a staggering $32 billion loss for the fiscal year ending in March 2023. - SoftBank's bet on AI extends beyond just OpenAI; the company is in the process of acquiring Ampere Computing, a producer of energy-efficient processors for cloud computing and AI, for $6.5 billion. - To finance its increasing commitment to AI, SoftBank divested its entire stake in Nvidia for $5.8 billion, signaling a strategic shift in its investment focus. - The company is also bolstering its AI infrastructure assets with the planned acquisition of digital infrastructure investor DigitalBridge Group in a deal valued at approximately $4 billion. - A significant contributor to SoftBank's portfolio is Arm Holdings, the chip designer in which it holds a majority stake; Arm's stock has seen a nearly 20% gain over the last four weeks as of mid-February 2026. - SoftBank's strategic moves into robotics include a definitive agreement to acquire ABB Ltd's robotics business for approximately $5.375 billion, with the deal expected to close in mid-to-late 2026. - The Vision Fund's recent $2.4 billion quarterly gain was almost entirely driven by the increased valuation of its OpenAI stake, which offset losses from other portfolio companies like Coupang and Didi. - SoftBank now holds an approximately 11% stake in OpenAI after a total investment of $34.6 billion, funneled through its second Vision Fund.
