SoftBank’s Net Profit Doubles to $16B

SoftBank Group has reported a dramatic surge in quarterly profit, underscoring its deepening pivot toward artificial intelligence investments.

The Tokyo-based conglomerate said net profit more than doubled to 2.502 trillion yen ($16.23 billion) for the quarter ended September, far exceeding analyst expectations. The result was propelled by massive gains from its investment in OpenAI, maker of ChatGPT, which contributed over 2 trillion yen in profit.

The figure dwarfs last year’s 1.18 trillion yen and eclipses analyst forecasts of 480 billion yen, showing how the AI boom is reshaping the financial fortunes of major tech investors.

Exit from Nvidia

SoftBank also revealed it sold its entire stake in Nvidia for $5.83 billion in October. The move marks a symbolic shift: SoftBank, once among the early believers in Nvidia’s AI chip potential, is now redirecting capital into the software and infrastructure side of AI.

The company and its asset management unit have committed to invest a further $22.5 billion into OpenAI through Vision Fund 2 in December. Co-investors have already pledged to cover the $10 billion syndication portion of SoftBank’s broader $40 billion OpenAI investment.

OpenAI’s expansion plans

SoftBank’s expanding role comes as OpenAI transitions into a traditional corporate structure — a step designed to streamline fundraising and attract talent in the face of intense competition from rivals like Anthropic, Google DeepMind, and xAI.

OpenAI’s recently announced $500 billion Stargate project, developed with SoftBank and Oracle, includes five new U.S. data centers to support large-scale AI model training. The plan marks one of the most ambitious infrastructure pushes in the tech industry, signaling that SoftBank is now positioning itself as a long-term builder of global AI infrastructure rather than just a financial backer.

Reversal of strategy

After years of defensive maneuvering following high-profile setbacks at its Vision Fund, including losses in WeWork and Didi, SoftBank is now back on offense. Chairman and CEO Masayoshi Son has repeatedly called AI the core driver of humanity’s next revolution.

In line with that vision, SoftBank in October agreed to acquire ABB’s robotics division for $5.4 billion. The deal reflects Son’s goal of merging robotics with advanced AI to create next-generation autonomous systems. Meanwhile, SoftBank’s payments arm PayPay has filed for a U.S. IPO, expected to generate billions that could fund further AI investments.

Arm and market confidence

Adding to SoftBank’s momentum, Arm Holdings — its U.K.-based chip-design subsidiary — also reported a doubling in profit last week, as demand for its energy-efficient compute architecture continues to grow.

Investors have rewarded the company’s AI-driven resurgence: SoftBank’s shares have more than doubled this year. Analysts point to optimism surrounding AI’s expanding role in global industries, from cloud computing to healthcare and manufacturing. Confidence has been further bolstered by Japan’s new prime minister, Sanae Takaichi, whose pro-tech agenda includes promoting AI and advanced research.

Broader implications

SoftBank’s moves carry global implications. Its massive bet on OpenAI cements Japan’s position in the global AI race, potentially reshaping Asia’s technological influence. The sale of Nvidia shares, while surprising, suggests SoftBank now sees greater upside in owning the platforms and models that define AI’s future, rather than just the chips that power them.