In its fiscal third quarter, SoftBank (9984) reported a net profit of ¥248.6 billion (approximately $1.6 billion), powered by significant valuation gains from OpenAI. This investment has yielded a remarkable $19.8 billion increase in value, reflecting burgeoning optimism in artificial intelligence. SoftBank has invested over $30 billion for an 11% stake in OpenAI and may invest an additional $30 billion, valuing the company between $750 billion and $830 billion. Furthermore, the Vision Fund regained profitability, posting a $2.4 billion gain, bolstered by a $4.2 billion boost related to OpenAI. Despite these gains, losses from companies like Coupang, Didi, and ByteDance highlight the inherent risks of venture investing. CEO Masayoshi Son’s strategy emphasizes concentrated bets on high-growth sectors, particularly AI. As SoftBank contemplates increasing its OpenAI exposure, it faces both significant potential rewards and inherent risk volatility in this fast-evolving market.
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