SoftBank's Profit Soars on AI Investments and Strategic Focus
Japanese technology conglomerate SoftBank Group Corp. has reported a significant financial turnaround, posting a 421.8 billion yen ($2.9 billion) profit for the April-June quarter of 2025. This marks a substantial rebound from a 174 billion yen loss recorded in the same period a year prior, largely fueled by the surging interest in artificial intelligence technologies.
The Tokyo-based investment giant, known for its strategic stakes in leading AI companies such as Nvidia and OpenAI, saw its quarterly sales climb 7% to 1.8 trillion yen ($12 billion). SoftBank’s financial performance often experiences fluctuations due to its expansive investments across a diverse portfolio of ventures, primarily managed through its Vision Funds, an approach inherently carrying considerable risk.
However, the group’s founder, Masayoshi Son, has consistently articulated his profound belief in the transformative potential of AI, positioning it as a central pillar of SoftBank’s long-term strategy. This conviction appears to be paying off, with the company’s investments in chip manufacturers like Arm Holdings and Taiwan Semiconductor Manufacturing Co. (TSMC) also benefiting immensely from the escalating demand for AI-driven hardware.
SoftBank senior executive Yoshimitsu Goto underscored this strategic focus, telling reporters, “The era is definitely AI, and we are focused on AI. An investment company goes through its ups and downs, but we are recently seeing steady growth.”
Beyond its core AI-centric holdings, SoftBank’s broader investment portfolio has also yielded notable successes. Among these is Coupang, the South Korean e-commerce behemoth often dubbed the “Amazon of South Korea,” which has expanded its operations into the U.S. and other Asian markets. Furthermore, the company has successfully overseen initial public offerings (IPOs) for Chime, a U.S. “neobank” providing banking services to consumers with lower credit scores, and eToro, a popular personal investment platform. Preparations are also reportedly well underway for the IPO of PayPay, SoftBank’s cashless payment system, indicating continued monetization of its diverse assets.
Following the announcement of its robust earnings, SoftBank Group stock closed 1.3% higher on the Tokyo Stock Exchange, building on an upward trend observed over the past year. The positive market reaction reflects investor confidence in the conglomerate’s strategic pivot towards AI and the broader strength of its underlying investments.