SoftBank Group has reported a remarkable second-quarter net profit surge, driven largely by its bold SoftBank OpenAI investment strategy and a profitable exit from Nvidia. Under the leadership of Masayoshi Son, the Japanese conglomerate saw profits soar to 2.5 trillion yen ($16.6 billion), more than double from the previous year.
The gains reflect Son’s decision to commit over $30 billion to OpenAI, the company behind ChatGPT, while divesting all of SoftBank’s Nvidia shares in October. The move, though risky, has proven lucrative amid OpenAI’s rising valuation, which has reached about $500 billion, making it the most valuable private company in the world.
OpenAI’s Growth Fuels SoftBank’s Windfall
OpenAI CEO Sam Altman recently projected that the company’s annualized revenue would exceed $20 billion in 2025 and could rise to hundreds of billions by 2030. The startup has also signed agreements worth over $1.4 trillion for data centers and infrastructure to meet the exploding demand for AI services.
SoftBank’s Vision Fund posted an investment gain of 3.5 trillion yen, with 2.16 trillion yen stemming from OpenAI holdings. The company’s sale of its Nvidia stake for $5.83 billion and a portion of T-Mobile shares for $9.17 billion provided additional liquidity for new AI-related investments.
Son’s High-Stakes Strategy and Investor Concerns
While investors have praised SoftBank’s impressive returns, some analysts warn of a possible AI bubble as tech firms continue pouring billions into artificial intelligence infrastructure. Critics argue that such rapid capital injection might outpace actual profit potential.
SoftBank CFO Yoshimitsu Goto acknowledged these concerns but defended the aggressive investment strategy. “The risk of not investing is far greater than the risk of investing,” he said at a Tokyo press briefing.
The company has also expanded its financing efforts, issuing bonds in multiple currencies and securing bridging loans exceeding $15 billion to fund its OpenAI and semiconductor ventures, including Ampere Computing.
From Nvidia to OpenAI: A Strategic Shift
SoftBank’s divestment from Nvidia marks a significant pivot. The firm initially sold its Nvidia shares before the AI boom, then reentered and exited again to fund its massive OpenAI stake. Market experts like Wong Kok Hoi of APS Asset Management suggest this reflects Son’s calculated optimism about OpenAI’s long-term dominance rather than short-term GPU demand.
The company’s stock has nearly quadrupled in value over the past six months, prompting a four-to-one stock split to make shares more accessible. Yet, as Son doubles down on his vision for AI supremacy, the global market watches closely to see whether the billionaire’s biggest gamble will secure another Alibaba-like triumph—or risk repeating the missteps of past ventures like WeWork.
