SoftBank's $2.9bn Profit Boosted by Nvidia AI Investment
Tokyo-based technology conglomerate SoftBank Group has announced a significant return to profitability, posting a net profit of 421.8 billion yen, equivalent to approximately $2.87 billion, for the first fiscal quarter ending June 30, 2025. This marks a substantial turnaround from a net loss in the same period last year, largely propelled by strategic investments within its portfolio, most notably a dramatically increased stake in AI chip giant Nvidia.
The positive earnings report underscores the impact of SoftBank’s renewed focus on artificial intelligence, a strategy aggressively championed by its founder, Masayoshi Son. A key contributor to the recent gains was the substantial appreciation of SoftBank’s holdings in Nvidia. Regulatory filings reveal that SoftBank tripled its investment in Nvidia by the end of March 2025, raising its stake from $1 billion to roughly $3 billion. This strategic bet has proven lucrative, with Nvidia’s market value surging by nearly 90% since early April, directly contributing to SoftBank’s paper gains and overall financial health.
Masayoshi Son’s vision extends beyond mere stock holdings; he is actively shaping SoftBank’s future around the foundational elements of the AI revolution. At the heart of this strategy lies Arm Holdings, the chip designer in which SoftBank maintains a significant stake. Son is methodically building a comprehensive portfolio around Arm, making calculated investments in critical industry players such as Nvidia and Taiwan Semiconductor Manufacturing Co. (TSMC). Beyond Nvidia, SoftBank also acquired approximately $330 million worth of TSMC shares and $170 million in Oracle, further cementing its commitment to the hardware underpinning advanced AI.
A testament to SoftBank’s bold AI ambitions is its lead partnership in the “Stargate Project,” an ambitious new venture aiming to funnel $500 billion over four years into developing cutting-edge AI infrastructure for OpenAI in the United States. With an initial deployment of $100 billion already underway and Son himself slated to chair the project, Stargate represents a massive push to secure American leadership in AI, with Oracle and Nvidia serving as crucial technology partners. This initiative follows SoftBank’s Vision Fund monetizing nearly $2 billion in assets during the first half of 2025, providing fresh liquidity for these expansive hardware investments.
While the Vision Fund’s investment unit recorded a gain of 726.8 billion yen ($4.94 billion) for the quarter, with about half attributed to South Korean e-commerce firm Coupang, SoftBank Group’s broader financial stability is also supported by its domestic telecom operations. SoftBank Corp., the group’s telecommunications arm, reported a record Q1 FY2025 revenue of 1,658.6 billion JPY, an 8% year-on-year increase, with all business segments showing robust growth. This steady performance provides a solid foundation as the conglomerate embarks on its most significant spending spree in years, channeling substantial capital into the burgeoning AI landscape. The latest results signal a clear resurgence for SoftBank, driven by a confident pivot towards becoming a central architect in the global artificial intelligence ecosystem.