Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Eye On AI: As SoftBank Piles Up Losses, It Doubles Down On AI

Feb 20, 2025 - news.crunchbase.com
The article discusses SoftBank's recent investment activities, particularly in the AI sector, despite experiencing significant financial losses. SoftBank reported a net loss of nearly $2.4 billion for its fiscal third quarter, with its Vision Fund losing about $2 billion due to declining shares in companies like Coupang and Didi. Despite these setbacks, SoftBank is aggressively investing in AI, with plans to invest $40 billion into OpenAI and participating in various other AI-related funding rounds, including a $500 million investment in OpenAI's $6.6 billion raise. The article questions whether SoftBank's strategy of investing in high-valuation ventures will yield better results than in the past.

Additionally, the article highlights Safe Superintelligence, an AI research lab co-founded by OpenAI's former chief scientist Ilya Sutskever, which is in talks to raise another $1 billion at a $30 billion valuation. This follows a previous $1 billion raise in September, which valued the startup at $5 billion. The article underscores the ongoing trend of substantial investments in AI startups, despite the volatile nature of the market and past investment challenges faced by major players like SoftBank.

Key takeaways:

  • SoftBank reported a net loss of nearly $2.4 billion for its fiscal third quarter, yet plans to invest heavily in AI, including $40 billion into OpenAI.
  • The Vision Fund, known for its investments in startups like Uber and DoorDash, lost about $2 billion as shares of companies like Coupang and Didi fell.
  • SoftBank has been actively investing in AI-related startups, including a $500 million investment in OpenAI's $6.6 billion raise and co-leading Skild AI's $300 million Series A.
  • Safe Superintelligence, co-founded by OpenAI's former chief scientist, is in talks to raise another $1 billion, valuing the startup at $30 billion, a sixfold increase from its previous valuation.
View Full Article

Comments (0)

Be the first to comment!