SoftBank Posts $2.87 Billion Profit on AI Investment
SoftBank Group Corp. has announced a net profit of $2.87 billion for the first quarter of fiscal year 2025, a remarkable recovery from a $1.18 billion net loss in the same period the previous year. This turnaround is primarily fueled by a surge in the company’s artificial intelligence (AI) investments, which have seen significant valuation increases and growth. The profit highlights SoftBank’s aggressive push into AI-driven ventures, marking its most ambitious investment phase since the inception of its Vision Funds in 2017 and 2019.
AI Investments Fueling the Profit
The cornerstone of SoftBank’s financial success this quarter lies in its Vision Fund, which reported an investment gain of $4.94 billion. This gain stems from rising valuations in AI-focused companies within its portfolio. A key contributor is SoftBank’s stake in OpenAI, the creator of ChatGPT, which recently completed a $40 billion funding round at a $260 billion valuation, with SoftBank leading the charge. This investment has paid off as OpenAI’s AI tools continue to disrupt industries like content creation and software development. Additionally, the surge in share prices of portfolio companies like Coupang, a South Korean e-commerce giant leveraging AI in logistics and customer service, has further bolstered the Vision Fund’s performance.
Beyond OpenAI, SoftBank is making bold moves in AI infrastructure. The company is spearheading the Stargate project, a $500 billion initiative to build AI-focused data centers in the United States, in collaboration with OpenAI and Oracle. Announced in January 2025 by U.S. President Donald Trump, this project aims to strengthen U.S. AI capabilities. SoftBank is also committing $1 trillion to develop AI-equipped factories across the U.S., integrating robotics and automation to revolutionize manufacturing and address labor shortages. These strategic investments underscore SoftBank’s vision to lead the global AI transformation.
Financing the AI Boom
To sustain its AI investment spree, SoftBank is employing a mix of asset sales and debt financing. The company raised $4.8 billion in July 2025 by offloading part of its stake in T-Mobile, redirecting proceeds to fund new AI ventures. Furthermore, SoftBank is negotiating to borrow $16 billion to support its AI ambitions, echoing the debt-driven strategy of its earlier Vision Fund expansions. The $40 billion OpenAI funding round alone requires SoftBank to contribute $22.5 billion by the end of 2025, with the remainder already secured from other investors. While this approach amplifies SoftBank’s ability to seize AI opportunities, it also raises concerns about its debt levels and the sustainability of its investment pace, given the Vision Funds’ modest cumulative gains of $5 billion on $172.2 billion in committed capital as of June 2025.
Broader Impact and Future Prospects
SoftBank’s profit surge aligns with a global AI investment boom, with spending projected to hit $1.5 trillion by 2030. The company’s $100 billion pledge in December 2024 to bolster U.S. AI and infrastructure, announced alongside then-President-elect Donald Trump, aims to create 100,000 jobs and cement U.S. leadership in AI. Investments in startups like Perplexity AI, valued at $3 billion, and massive projects like Stargate position SoftBank as a pivotal player in the AI ecosystem.
However, challenges loom on the horizon. Geopolitical risks, U.S. tariff policies, and the need to balance debt with long-term returns could test SoftBank’s strategy. Founder Masayoshi Son envisions the company as the “organizer of the industry” in AI, leveraging its $184 billion portfolio to create synergies among its holdings. As AI continues to reshape industries from manufacturing to finance, SoftBank’s success will depend on its ability to monetize these investments and navigate market volatility.
Conclusion
SoftBank’s $2.87 billion profit in Q1 2025 reflects the transformative power of its AI investment strategy. From leading OpenAI’s funding to driving ambitious projects like Stargate and AI factories, SoftBank is positioning itself at the forefront of the AI revolution. While its aggressive approach carries risks, the company’s ability to capitalize on AI’s growth potential signals a promising—if challenging—path ahead in shaping the future of technology.
