SoftBank Group reported a net profit of 248.6 billion yen ($1.62 billion) for Q4 2022, marking its fourth consecutive profitable quarter, compared to a 369 billion yen loss from the previous year. This turnaround was driven primarily by the increased valuation of its investment in OpenAI, which has provided a staggering 2.8 trillion yen in gains over the past nine months. SoftBank has invested over $30 billion in OpenAI, acquiring approximately 11% of the company, positioning itself strategically in the competitive large language model space. To support these investments, SoftBank has engaged in asset sales and borrowed against its holdings, including recent divestments of its stakes in Nvidia and T-Mobile. This financial maneuvering has raised concerns among investors regarding SoftBank’s capacity to continue funding OpenAI, which hasn’t turned a profit. The competitive landscape for AI development is intensifying, especially with rising costs from other major players like Alphabet.
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