Net Profit Surges to $16 Billion on Strong Gains from OpenAI and PayPay Holdings
In a bold financial move that underscores its growing ambition in the artificial intelligence sector, SoftBank Group has sold its entire $5.8 billion stake in Nvidia, one of the world’s leading AI chipmakers. The Japanese tech conglomerate, led by visionary founder Masayoshi Son, revealed that the sale is part of a broader strategy to free up funds for what it calls its “next big wave” of AI-focused investments.
The announcement came alongside SoftBank’s quarterly earnings report, which showed an astonishing net profit of ¥2.5 trillion ($16.2 billion) for the quarter ending September — more than double the profit from the same period last year. The results far exceeded analyst expectations of ¥207 billion, according to LSEG data, driven largely by the success of its Vision Funds, which benefited from soaring valuations in OpenAI and Japanese fintech firm PayPay.
Fueling the AI Future
SoftBank’s Chief Financial Officer Yoshimitsu Goto confirmed that the Nvidia sale was not due to concerns about the company itself but rather a strategic funding move. “This year our investment in OpenAI is large — more than $30 billion needs to be made — so for that we do need to divest our existing portfolios,” Goto said.
Masayoshi Son has made no secret of his goal to position SoftBank at the heart of the global AI revolution. From owning UK chip designer Arm Holdings to investing in Oracle for cloud infrastructure and backing the Stargate data center project in the U.S., SoftBank’s AI strategy spans the entire technological stack — chips, data, and compute power. The company also recently acquired ABB’s robotics arm in a $5.4 billion deal, further reinforcing its bet on automation and machine intelligence.
Riding the AI Investment Boom
SoftBank’s Vision Funds, which once suffered from tech market volatility, have made a roaring comeback. The group recorded ¥2.8 trillion in investment gains in the second quarter alone, thanks largely to its stakes in ChatGPT maker OpenAI and PayPay. The company also raised $9.2 billion by selling part of its stake in T-Mobile US, further strengthening its capital position.
The surge in investor optimism has more than doubled SoftBank’s share price this year to over ¥22,000, making Masayoshi Son Japan’s richest man. To broaden accessibility for retail investors, SoftBank also announced a four-to-one stock split effective January 1, aimed at expanding its shareholder base.
Analysts Divided on Valuation
Despite SoftBank’s stellar performance, analysts remain split on the company’s long-term outlook. CLSA analyst Oliver Matthew noted that SoftBank’s shares still trade at a 25% discount compared to the value of its underlying assets — assuming OpenAI reaches a $1 trillion valuation. Matthew maintains a bullish price target of ¥29,000, citing continued optimism around SoftBank’s AI-linked portfolio.
However, some market watchers are sounding a note of caution. David Gibson of MST Financial recently downgraded SoftBank’s stock, citing concerns over excessive funding commitments and questions about the sustainability of OpenAI’s growth trajectory. “Longer term, I estimate SoftBank has committed $113 billion in investments but only has funding ability of $58.5 billion,” Gibson warned, suggesting that the firm may eventually need to liquidate more assets or draw from its Vision Funds to cover the gap.
Gibson added that while equity markets appear unconcerned, debt investors are already signaling alarm — pointing to recent bond issues carrying interest rates above 8% as evidence of rising funding risks.
Betting Big on Humanity’s AI Future
For Son, however, these risks are worth taking. He has long described AI as “the greatest technological revolution in human history”, one that will reshape every industry — and even redefine human potential. His recent strategic maneuvers suggest that SoftBank is doubling down on this conviction, reallocating capital from traditional holdings into companies that could define the AI-powered future.
As the dust settles on its Nvidia divestment, one thing is clear: SoftBank is no longer just a tech investor — it’s positioning itself as a global architect of the AI economy.
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