SoftBank Reports $3.5 Billion Q4 Profit, Advances $100 Billion AI Stargate Project

SoftBank Group reported a surprising net profit of $3. 5 billion (¥517. 2 billion) in its fiscal fourth quarter, surpassing analyst expectations of a loss and significantly improving from the ¥231 billion profit in the same period last year. This strong quarterly performance contributed to SoftBank’s first annual profit in four years, totaling ¥1. 2 trillion. The gains largely stemmed from improved valuations in SoftBank’s telecommunications investments, including stakes in T-Mobile and Deutsche Telekom, as well as a positive turnaround in holdings like Alibaba, Coupang, and ByteDance. These recoveries strengthened investor confidence and boosted SoftBank’s overall financial health. Additionally, the Vision Funds contributed ¥177 billion in profit for the quarter, marking a recovery after previous losses and highlighting the robustness of SoftBank’s investment approach in technology startups and growth-stage companies. SoftBank’s positive financial results coincide with its intensified focus on artificial intelligence (AI). The company is developing the Stargate project—a $100 billion infrastructure initiative in partnership with OpenAI, Oracle, Microsoft, and Nvidia. This project involves building large-scale data centers across Texas and other U. S. locations to meet rising AI computing and cloud service demands.
Stargate represents SoftBank’s strategic pivot toward capitalizing on the AI revolution, aiming to establish a strong foundation for future technological advancements despite challenges related to financing and competition from other tech giants. Chief Financial Officer Yoshimitsu Goto reassured that progress on Stargate is on track, emphasizing SoftBank’s commitment to overcoming obstacles through partnerships. Concurrently, SoftBank is consolidating its robotics business to align with founder and CEO Masayoshi Son’s vision of integrating AI-driven technologies across sectors such as semiconductors, robotics, power systems, and software, fostering a transformative new economic era powered by AI. In support of this strategy, SoftBank recently acquired Ampere, a semiconductor company focused on energy-efficient server chips, for $6. 5 billion. This acquisition secures vital hardware for AI computing and high-performance workloads, complementing the company’s broader AI-driven ambitions. Together, SoftBank’s financial turnaround and strategic initiatives underscore its commitment to leadership in the evolving technology landscape. With substantial investments spanning AI infrastructure, telecommunications, semiconductors, and robotics, SoftBank is positioning itself as a key player shaping the future digital economy. The unexpected profit and return to annual profitability provide a strong foundation for executing its ambitious plans. Moving forward, market observers will closely watch SoftBank’s progress in transforming these visionary projects into operational and commercial successes.
Brief news summary
SoftBank Group reported a strong fiscal Q4 net profit of $3.5 billion (¥517.2 billion), nearly doubling last year’s ¥231 billion and surpassing expectations. This result contributed to SoftBank’s first annual profit in four years, totaling ¥1.2 trillion. Key gains were driven by telecom investments in T-Mobile and Deutsche Telekom, as well as recoveries in Alibaba, Coupang, and ByteDance. The Vision Funds posted a ¥177 billion profit, fueled by successful tech startup investments. SoftBank is accelerating its AI focus through the $100 billion Stargate project, collaborating with OpenAI, Oracle, Microsoft, and Nvidia to build U.S. data centers enhancing AI and cloud capabilities. CFO Yoshimitsu Goto confirmed steady progress in these initiatives. Additionally, the group is consolidating its robotics units and acquired Ampere, a $6.5 billion semiconductor firm specializing in energy-efficient chips, aligning with CEO Masayoshi Son’s strategy to integrate AI, semiconductors, robotics, and software. These efforts underscore SoftBank’s pivotal role in shaping the future digital economy with substantial commercial potential.
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