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SoftBank swings to $7.7 billion profit as it readies fresh AI bets

Nov 12, 2024 - businessinsider.com
SoftBank reported a $7.7 billion profit for the quarter, a significant turnaround from a $6 billion loss in the same period last year. The profit was largely due to gains in its tech investments, particularly in AI and public listings. The company's Vision Funds, which include both public and private holdings in tech companies, performed strongly, with Vision Fund 1 reporting a $3 billion gain in Q2. The CFO of SoftBank's Vision Funds attributed the success to "macro tailwinds" such as US interest rate cuts and stimulus measures in China.

Despite the profit, SoftBank's Vision Fund 2 has lost a total of $21 billion since its inception, due to a challenging interest rate environment and a slow IPO market. However, the company is optimistic about future gains from IPOs and is preparing for a major investment spree in AI. SoftBank's CEO, Masayoshi Son, has expressed his ambition to achieve "artificial superintelligence" within a decade and has already invested in AI companies like Perplexity and chip firms like Graphcore and Arm.

Key takeaways:

  • SoftBank reported a $7.7 billion quarterly profit, a significant turnaround from a $6 billion loss in the same period last year, largely due to gains in its tech investments.
  • SoftBank Vision Fund's CFO attributed the strong performance to 'macro tailwinds' such as US interest rate cuts and stimulus measures in China.
  • Despite the recent gains, Vision Fund 2 has lost a total of $21 billion since its inception, grappling with a tougher interest rate environment and a slow IPO market.
  • SoftBank is preparing for a significant investment spree in AI, with CEO Masayoshi Son expressing his ambition to achieve 'artificial superintelligence' within a decade.
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