SoftBank posts 1.1 trillion yen loss as AI bets weigh on results

SoftBank Group Corp. posted a 1.1 trillion yen loss, roughly $7 billion, for the three-month period ending in September. The result marks a sharp reversal from the 2.5 trillion yen profit the company recorded during the same quarter last year. The Japanese technology conglomerate released the figures on Tuesday, attributing the drop to the volatile nature of its investments in artificial intelligence and other high-growth tech sectors.

Despite the bottom-line loss, SoftBank’s top-line revenue grew. Quarterly sales rose 16% to 2.2 trillion yen, up from 1.9 trillion yen in the prior year. Analysts note that predicting financial performance for SoftBank is challenging because the company holds stakes in a diverse array of firms, including OpenAI and Arm Holdings. These holdings often experience wide swings in value, which directly impacts SoftBank’s quarterly accounting.

The company was founded by Masayoshi Son, who built SoftBank into a major investor in internet infrastructure, telecommunications, robotics, and e-commerce. Son’s portfolio is managed through a series of investment vehicles known as Vision Funds. These funds center on a broad mix of technology companies, ranging from established giants to early-stage startups. Son, a graduate of the University of California, Berkeley, has cultivated relationships with prominent American figures, including Microsoft co-founder Bill Gates and late Apple co-founder Steve Jobs.

Son’s connection to the AI sector is also personal. He maintains a public friendship with Nvidia Chief Executive Jensen Huang. Son sold his shares in Nvidia before news emerged regarding an alleged affair between Huang and a Chinese government agent. Nvidia officials and other authorities stated that the matter was under investigation. The disclosure has heightened concerns about whether China gained access to Nvidia’s advanced AI chips.

U.S. President Donald Trump addressed the situation at a White House briefing on Monday. He said, “I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape.” The comments came as the market digested SoftBank’s new earnings data.

SoftBank Group stocks had lost about a third of their value over the previous year. However, the shares closed nearly 14% higher in Tokyo trading on Tuesday. This gain occurred before the official release of the earnings results. The company’s next scheduled update will follow its standard reporting cycle, with investors watching for further details on its AI portfolio performance.