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SoftBank's Triumphant AI Bet: From Losses to ¥1.153 Trillion Profit with Bold OpenAI Investment

Word on the StreetTuesday, May 13, 2025 4:01 am ET

1min read

SoftBank, the renowned Japanese tech investment conglomerate, has reported an impressive turnaround with a net profit of ¥1.153 trillion (approximately $7.77 billion) for the fiscal year ending in March. This marks a significant recovery from the previous year's net loss of ¥27.65 billion, highlighting a strategic shift and successful financial calibration.

The boost in profitability can be largely attributed to the heightened enthusiasm and market momentum within the artificial intelligence (AI) sector. After years of adopting a defensive strategy, SoftBank has decisively ramped up its investment activities, capitalizing on the burgeoning interest in AI technologies.

A pivotal move underscoring this strategy is SoftBank's recent agreement to spearhead a funding round of up to $40 billion for OpenAI, the creator of ChatGPT. This investment aims to elevate OpenAI's valuation to a staggering $300 billion, reflecting confidence in the transformative potential of AI-driven applications.

Additionally, SoftBank has expanded its tech portfolio by signing a $6.5 billion acquisition deal for the American chip design company Ampere Computing. This acquisition represents a strategic alignment with growing demand in advanced computing infrastructure, driven by AI advancements.

Moreover, in a collaborative effort announced in January, SoftBank and OpenAI plan to invest in building a formidable AI infrastructure in the United States. This initiative, in conjunction with partners such as Oracle and MGX from Abu Dhabi, signifies a commitment of up to $500 billion, underscoring the immense scale and ambition of SoftBank's future-focused ventures.

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