Softbank Group Returns to Profitability Fueled by AI Boom

Deep News
Feb 12

Softbank Group Corp, the Japanese technology and telecommunications giant, announced on Thursday that it has returned to profitability for the fourth quarter of 2025, as its investments in companies like OpenAI begin to yield returns.

The company reported a profit of 248.6 billion yen (approximately $1.62 billion) for the October-December quarter. This result marks a significant turnaround from the loss of 369 billion yen recorded in the same period a year earlier.

Quarterly sales increased by 8 percent, reaching 19.8 trillion yen (about $129 billion).

The Tokyo-based firm sold its stake in Nvidia for $5.8 billion in October, a move that aligns with its strategic focus on artificial intelligence.

Softbank Group Corp stated that it has invested a cumulative total of nearly $35 billion in ChatGPT developer OpenAI, acquiring an approximate 11 percent stake. This investment has generated substantial investment gains.

In other investment activities, Softbank Group Corp acquired US semiconductor design company Ampere last year for $6.5 billion, making it a wholly-owned American subsidiary.

Robotics represents another major area of focus for the company. Last year, Softbank Group Corp reached an agreement with ABB to acquire its robotics business for $5.375 billion. This transaction is still pending approval from regulatory bodies in Europe, China, the United States, and other regions.

For the first nine months of the fiscal year ending in December, Softbank Group Corp achieved a profit of 3.17 trillion yen (approximately $207 billion), which is about five times the profit from the same period a year ago. Sales for the nine-month period saw a modest increase of nearly 8 percent, reaching 57 trillion yen (about $370 billion).

The company typically does not provide annual earnings forecasts.

"Our investments are starting to bear fruit," Softbank Group Corp Chief Financial Officer Yoshimitsu Goto told reporters.

He emphasized that the gains are not solely from OpenAI but also stem from multiple investments, including AI chip company Arm.

The financial performance of Softbank Group Corp is often subject to significant volatility, reflecting the company's aggressive investment strategy in innovative, often early-stage, technology sectors.

Although the current strategy of betting on OpenAI appears to be successful, some analysts have cautioned that over-reliance on OpenAI could pose potential risks.

Shares of Softbank Group Corp rose 2.4 percent on Thursday.

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