SoftBank reports a massive $19 billion quarterly profit fueled by AI investments, including a major stake in OpenAI. The firm also reveals it has sold its entire SoftBank holding in Nvidia.
Record Quarter Powered by Vision Fund’s AI Bets
Japanese tech giant SoftBank reported a huge quarterly profit of $19 billion. The gain was mainly due to its rising AI investments. The staggering figure, reported for the fiscal second quarter, underscores the company’s successful pivot towards dominating the AI sector.
The massive gain came largely from the SoftBank Vision Fund, which earned significant returns from its stake in ChatGPT-maker OpenAI. This investment added about $14 billion to the fund’s value. It shows the huge financial gains from the AI boom.
Strategic Shift: Selling Nvidia to Double Down on AI
In a parallel strategic move, SoftBank disclosed that it sold its entire remaining stake in chipmaker Nvidia for $5.8 billion. The company did not give a specific reason for the sale. It fits founder Masayoshi Son’s plan to fund artificial superintelligence (ASI) development.
The sale of Nvidia shares, executed in October, signals a consolidation of resources towards core AI ventures. SoftBank is a key partner in a $500 billion U.S. AI project. The company also invests in OpenAI.
A Future Focused on Artificial Superintelligence
The record-breaking earnings solidify SoftBank‘s recovery and its strategic bet on the AI revolution. The conglomerate also announced a four-for-one stock split, effective at the start of the new year, aimed at making its shares more accessible to a broader base of investors as it continues to pursue its goal of leading the coming technological transformation.
FAQs
The profit was primarily driven by a $19 billion gain in its Vision Fund, largely due to the increased valuation of its strategic investment in AI company OpenAI.
While not explicitly stated, the sale of its $5.8 billion Nvidia stake is seen as a strategic move to reallocate capital towards its core artificial intelligence and “artificial superintelligence” (ASI) initiatives.
SoftBank is aggressively investing in the AI ecosystem, with a particular focus on developing “artificial superintelligence.” This includes major funding for OpenAI and large-scale infrastructure projects.
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