SoftBank has reported a $7.7 billion profit for the recent quarter, marking a significant recovery from its $6 billion loss in the same period last year. The Japanese tech conglomerate attributed this surge to gains across its Vision Funds and strategic tech investments, particularly in AI. Vision Fund 1, a $98.6 billion fund launched in 2016 with support from sovereign wealth funds in Abu Dhabi and Saudi Arabia, posted $3 billion in gains from its public portfolio, including Didi Chuxing, a key Chinese tech investment.
As SoftBank shifts its focus towards AI, its Vision Fund 2 recently made a $500 million investment in OpenAI and reported a $900 million gain in the quarter from private holdings, notably including the UK fintech company Revolut. Since SoftBank’s initial investment in Revolut in 2021, the fintech firm has grown significantly, with its valuation now reaching $45 billion following recent banking licenses in the UK and Mexico.
The improved performance of SoftBank’s Vision Funds highlights the impact of favorable “macro tailwinds,” as noted by Vision Funds’ CFO Navneet Govil, with factors like US interest rate cuts and economic stimulus in China driving growth in SoftBank’s public and private portfolios. This marks the company’s highest profit in two years, signaling a strengthened position as it ramps up investments in AI and prepares for future IPOs.
