SoftBank Posts USD 2.9B Profit on Strong AI Investments

SoftBank Group Corp. posted a strong profit of 421.8 billion yen (USD 2.9 billion) in the April-June period of fiscal 2025, reversing a loss of 174 billion yen a year ago.

The firm's strong performance was led by surging returns on AI-linked investments such as holdings in Nvidia, OpenAI, Arm Holdings, and Taiwan Semiconductor Manufacturing Co.

Quarterly revenue for the Tokyo-based tech conglomerate rose 7 percent year-on-year to 1.8 trillion yen (USD 12 billion), reflecting heightened demand in AI and chip manufacturing.

SoftBank’s Vision Funds are known for bold bets across tech played a central role in this rebound, though the company acknowledged that such investment strategies come with volatility.

Key highlights:

• SoftBank posted a Yen 421.8 billion ($2.9B) profit in Q1FY25, reversing a loss from the same period last year
• Strong returns from AI-focused investments in Nvidia, Arm, and TSMC drove the rebound
• IPO plans for PayPay are progressing, while past listings like Chime and Etoro continue to boost performance

Yoshimitsu Goto, Senior Executive at SoftBank Group, said. "The times are certainly AI, and we are centered on AI. An investment company has its highs and lows, but we are recently experiencing stable growth."

Founder Masayoshi Son has been a long-time believer in the revolutionary potential of AI, and brought SoftBank's long-term vision in line with new technologies. Chipmaker investments in Arm and TSMC are paying off big as the world demands more AI infrastructure.

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Outside of AI, there were also gains at Coupang, which has become commonly referred to as the "Amazon of South Korea," expanding into the U.S. and other Asian territories.

Goto also assured that planning for the IPO of SoftBank's cashless payments business PayPay is well on its way. Past IPOs of fintech startups such as Chime and investment platform Etoro have also supported the group's better performance.