• SoftBank Group swung to a 1.1 trillion yen ($7 billion) net loss for the quarter ended September, reversing a 2.5 trillion yen profit a year earlier, as AI investment concerns weighed on results even though sales rose 16%.
  • The shift is important for AI investors because SoftBank holds stakes in OpenAI and Arm through its Vision Fund.
  • It shows how quickly SoftBank’s profits can change when its biggest tech investments lose value.

SoftBank Group reported a net loss of 1.1 trillion yen ($7 billion) for the three months ending September. This was a sharp shift from the profit it made a year earlier, as growing concerns about AI investments hurt the Japanese company’s results, the Associated Press reported.

A sharp reversal from a year of profit

The loss is a major change for the Tokyo-based company. SoftBank made a profit of 2.5 trillion yen in the same period a year earlier, the AP reported. However, its revenue continued to grow, rising 16% to 2.2 trillion yen from 1.9 trillion yen a year earlier.

SoftBank’s profits can change quickly because they depend on how the company’s investments perform. The company owns stakes in OpenAI and chipmaker Arm Holdings, among others, via its Vision Funds.

The funds invest in tech startups and large technology companies. As is well known, the values of these companies are prone to sharp rises or dips.

SoftBank founder exits Nvidia before Huang scandal

SoftBank founder Masayoshi Son built the company around internet technology before expanding into AI, telecommunications, robotics and online shopping. He is also close friends with Nvidia CEO Jensen Huang.

Son sold his Nvidia shares before the reports linking Huang to an alleged affair with a Chinese government agent emerged. The matter is reportedly under investigation by Nvidia and US authorities.

U.S. President Donald Trump said the FBI was looking into another matter and expressed confidence that Huang would be fine during a White House briefing on Monday, according to the AP. The reports have also raised questions about whether China has gained access to Nvidia’s AI chips.

Shares rose before results report

SoftBank’s shares have lost almost a third of their value in the past year. However, they rose nearly 14% in Tokyo on Tuesday before the earnings report.

SoftBank’s results show how much it relies on a few major tech investments. Changes in their value can have a big impact on its profits, making its financial results harder to predict.

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Opeyemi Olanrewaju

Opeyemi specializes in creating and refining high-quality content focused on cryptocurrency, global financial markets and the economy. He graduated from the University of Ibadan with an MBBS degree. He has worked as Editor-in-Chief for his College’s editorial publication and previously at CFA. For over six years, he has helped safeguard uniqueness as news editor at Cryptopolitan.

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