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Arm owner SoftBank reports £1.2bn profit as it shifts towards AI

May 13, 2024 - theguardian.com
SoftBank, the Japanese tech investor, reported a net income of 231bn yen (£1.18bn) in Q1 2024, marking its second consecutive profitable quarter. This is a significant improvement from a 57.6bn yen loss in the same period last year. Despite this, the company still recorded its third annual loss of 227bn yen due to losses over the rest of the financial year. The company also saw gains on its investments, including UK-based chip designer Arm, which is expected to be a key part of SoftBank's new AI-focused strategy.

However, the company's Saudi-backed Vision Funds did not perform as well, dropping in value by 115bn yen in the first three months of the year, largely due to the bankruptcy of WeWork, a company that SoftBank had heavily backed. Despite this, SoftBank's continued profitability could make it easier for CEO Masayoshi Son to justify further large investments.

Key takeaways:

  • SoftBank reported a net income of 231bn yen (£1.18bn) in the first three months of 2024, a significant improvement from a 57.6bn yen loss in the same period the previous year.
  • Despite the quarterly gain, SoftBank still recorded its third annual loss due to losses over the rest of its financial year.
  • SoftBank made significant gains on its investments, including in the UK-based chip designer Arm, which is expected to be the centerpiece of a new AI-focused strategy.
  • SoftBank is also reportedly in talks to acquire British AI chipmaker Graphcore and recently led a $1bn (£800m) funding round into British autonomous driving tech company Wayve.
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