By Despite reporting a net loss of 369.17 billion yen ($2.4 billion) for the third quarter of fiscal year 2024, SoftBank Group Corp. is pushing forward with its ambitious artificial intelligence (AI) investment strategy. The loss, driven by a downturn in its Vision Fund investments, highlights the challenges the Japanese technology giant faces in balancing risk and innovation.
The Vision Fund recorded a loss of 352.75 billion yen (2.29billion) for the quarter, with Vision Fund 2 accounting for a 2.9 billion loss due to declining valuations of portfolio companies like Coupang and Didi Global. SoftBank’s investments in India, including Ola Electric, also saw significant declines, though the IPO of Swiggy provided some relief.
Despite these setbacks, SoftBank is doubling down on AI. The company is reportedly in talks to invest up to 40 billion in OpenAI, following an initial 500 million commitment. Additionally, SoftBank has pledged $15 billion to Stargate, an AI data center project in collaboration with OpenAI and Oracle.
During the quarter, the Vision Funds sold investments totaling 2.98 billion, including stakes in Door Dash and Sense Time. SoftBank’s cash reserves also dropped to 4.7 trillion yen (30.6 billion) as of December 31, down from 6.2 trillion yen in March.
The company’s commitment to AI underscores its belief in the transformative potential of the technology, even as it navigates financial challenges.