SoftBank’s OpenAI bet sparks $46 billion Vision Fund profit surge

Japanese technology investor SoftBank Group posted a sharp rise in quarterly profit on Wednesday as surging gains from its investment in OpenAI boosted the performance of its Vision Fund business.

The company reported a net profit of 1.9 trillion yen ($12.05 billion) for the January-March quarter, compared with a profit of 517 billion yen in the same period a year earlier.

The latest results marked SoftBank’s fifth consecutive quarter of net profit, underlining the growing importance of artificial intelligence investments to the group’s earnings recovery.

OpenAI drives Vision Fund performance

SoftBank’s Vision Fund unit recorded an investment gain of 3.1 trillion yen during the quarter, with the bulk of the increase linked to the rising value of OpenAI, the developer of ChatGPT.

For the fiscal year ended March, the Vision Fund booked gains totalling about US$46 billion (approx. $64.1 billion), driven primarily by SoftBank’s exposure to OpenAI.

SoftBank has already invested more than US$30 billion (approx. $41.8 billion) in OpenAI and has pledged an additional US$30 billion (approx. $41.8 billion) through 2026.

The company said earlier this year that its total committed investment in OpenAI would reach US$64.4 billion (approx. $89.8 billion), giving it an ownership stake of about 13%.

In March, OpenAI completed a funding round co-led by SoftBank that valued the artificial intelligence company at US$852 billion (approx. $1.2 trillion), significantly boosting the paper value of SoftBank’s holdings.

Other investments weigh on returns

Despite the strong gains from OpenAI, SoftBank’s broader investment portfolio remained under pressure.

During the March quarter, nearly all of the Vision Fund’s approximately US$20 billion (approx. $27.9 billion) gain came from OpenAI, while holdings in companies including Coupang, DiDi Global, and Klarna recorded losses.

SoftBank has increasingly positioned itself at the centre of the global AI boom through investments in artificial intelligence and semiconductor-related businesses, with OpenAI becoming the cornerstone of that strategy.

Debt concerns remain in focus

The company’s aggressive investment push has also heightened concerns about its balance sheet and debt exposure.

To finance its growing OpenAI commitment, SoftBank has sold stakes in companies such as T-Mobile and Nvidia, while also raising funds through loans and bond issuances backed by holdings including Arm Holdings and SoftBank Corp.

In March, S&P Global Ratings revised its outlook on SoftBank from “stable” to “negative,” citing concerns that the company’s liquidity position and portfolio quality could weaken because of its substantial additional investment in OpenAI.

The ratings agency said SoftBank could mitigate some financial risks through further asset sales as it continues to expand its AI-focused investment strategy.