SoftBank's AI-Driven Profit Revival

SoftBank Group Returns to Profitability in 2025

Tokyo-based SoftBank Group Corp., a major player in technology and telecommunications, has made a strong comeback in profitability for the last quarter of 2025. This success is attributed to its strategic investments in companies like OpenAI and other ventures, according to the company's recent announcement.

In the October-December period, SoftBank Group reported a profit of 248.6 billion yen ($1.62 billion), marking a significant turnaround from the 369 billion yen in losses recorded during the same quarter in the previous year. The company also saw an 8% increase in quarterly sales, reaching 1.98 trillion yen ($12.9 billion).

One of the key moves that contributed to this financial recovery was SoftBank's decision to sell its stake in Nvidia for $5.8 billion in October. This sale aligns with the company's growing focus on artificial intelligence (AI) and reflects its strategic shift towards high-growth sectors.

SoftBank has also made substantial investments in OpenAI, the developer behind the AI chatbot ChatGPT. The company has poured nearly $35 billion into OpenAI, securing an ownership interest of approximately 11%. This investment has yielded considerable returns, further boosting SoftBank's financial performance.

Diversified Investment Strategy

Beyond OpenAI, SoftBank has been actively expanding its portfolio through acquisitions and partnerships. In 2024, the company acquired Ampere, a U.S.-based semiconductor design company, for $6.5 billion. Following this acquisition, Ampere became a wholly owned subsidiary of SoftBank.

Another area of interest for SoftBank is robotics. The company reached an agreement with ABB to acquire its robotics business for $5.375 billion. However, this deal is still pending regulatory approval in several regions, including Europe, China, and the United States.

For the nine months ending in December, SoftBank Group posted a profit of 3.17 trillion yen ($20.7 billion), which is about five times the profit recorded in the same period the previous year. Nine-month sales increased by nearly 8%, reaching 5.7 trillion yen ($37 billion).

Strategic Focus on Innovation

Despite these positive results, SoftBank does not typically release annual profit forecasts. Its chief financial officer, Yoshimitsu Goto, highlighted that the gains are not solely due to OpenAI but also stem from a variety of other investments, including its stake in Arm, an AI semiconductor company.

SoftBank's investment strategy has always been bold, often targeting innovative and early-stage technologies. While this approach can lead to significant rewards, it also comes with inherent risks. Some analysts caution that over-reliance on any single investment, such as OpenAI, could pose challenges in the long term.

Despite these concerns, SoftBank's stock price rose by 2.4% on Thursday, reflecting investor confidence in the company's recent performance.

Looking Ahead

As SoftBank continues to navigate the dynamic landscape of technology and innovation, its ability to identify and capitalize on emerging opportunities will be crucial. With ongoing investments in AI, semiconductors, and robotics, the company is positioning itself to remain a key player in the global tech industry.

The coming years will likely see SoftBank face both opportunities and challenges as it balances its aggressive investment strategy with the need for sustainable growth. For now, the company's recent financial results suggest that its approach is yielding tangible benefits.