SoftBank Profits Triple: OpenAI Stake Drives Record Gains

SoftBank's quarterly profits have more than tripled, driven by a 25 billion dollar surge in its OpenAI stake. The company reported a net profit of 1.83 trillion yen in the January-March quarter, significantly exceeding analyst expectations. SoftBank's CFO Yoshimitsu Goto noted that the annual profit of 5 trillion yen is the highest ever for a Japanese company. The Vision Funds, which hold SoftBank's 13% stake in OpenAI, saw investment gains of 3.1 trillion yen in the fourth quarter. SoftBank has invested billions into OpenAI, with the initial investment made at a 150 billion dollar valuation in 2024. A recent funding round valued OpenAI at 852 billion dollars. SoftBank is also investing in other areas, including a new AI and robotics entity called Roze, targeting a 100 billion dollar valuation. This highlights the growing financial impact of AI investments on major tech companies.