SoftBank Vision Fund posts $46B gain from OpenAI investment

Japanese technology investor SoftBank Group posted a $46 billion annual gain at its Vision Fund, driven mainly by a sharp rise in the valuation of its stake in OpenAI.

SoftBank said gains from its investment in the ChatGPT maker totaled $45 billion in the fiscal year ended March, after the group invested more than $30 billion in the US artificial intelligence company.

The Vision Fund recorded a gain of around $20 billion in the January-March quarter, with OpenAI accounting for nearly all of the increase, while other portfolio companies, including Coupang, DiDi Global and Klarna, posted losses.

SoftBank has sought to place itself at the center of the global artificial intelligence boom through investments in AI and semiconductor-related companies, with OpenAI forming a key part of its strategy.

The Japanese group has committed to invest more than $60 billion in OpenAI, which would give it around 13% ownership in the company, SoftBank said in February. More than $30 billion of that amount has already been invested.

OpenAI closed a funding round in March, co-led by SoftBank, valuing the AI firm at $852 billion, despite rising competition from companies, including Google and Anthropic.

SoftBank, meanwhile, has been reducing stakes in companies such as T-Mobile and Nvidia to help fund its OpenAI investment.

The company said it recorded 218.1 billion yen ($1.4 billion) in gains from those sales and other investments during the fiscal year.

But excluding the Vision Fund, SoftBank posted an investment income loss of $3 billion after factors including exchange rates and expenses.

SoftBank Chief Financial Officer Yoshimitsu Goto emphasized financial discipline during the earnings call, pointing to the company’s $22.2 billion cash position, which he said can cover more than two years of bond redemptions.

Overall, SoftBank Group reported a net profit of $31.7 billion for the fiscal year, supported mainly by gains at the Vision Fund and earnings from its telecommunications business.