SoftBank Vision Fund Gains $2.4 Billion on OpenAI Boost

SoftBank Group announced a quarterly profit on Thursday, with its Vision Fund posting a $2.4 billion gain fueled by a sharp rise in the value of its OpenAI investment. The Japanese tech investor reported these results for the three months ended December, marking a shift from losses a year earlier. The OpenAI bet stood out as the main driver, helping cover shortfalls from weaker holdings elsewhere in the portfolio.

Background

SoftBank launched its Vision Fund in 2017 under founder Masayoshi Son to back big tech bets around the world. The fund raised tens of billions from investors like Saudi Arabia's public investment fund and Apple. Early years brought high hopes for startups in ride-sharing, logistics, and co-working spaces.

But trouble hit starting in 2018. Investments in companies like WeWork collapsed when growth plans fell short. WeWork's failed public offering led to billions in write-downs. Other names, such as Greensill Capital and Katerra, went bust or sold for pennies. By 2023, the fund had racked up losses over $30 billion as tech stock prices tanked worldwide.

The fund's portfolio took further hits from down rounds, where later investors forced lower company values. This meant SoftBank's early stakes lost paper value. Startups faced tight funding as interest rates rose and growth slowed after the pandemic boom.

SoftBank shifted focus to AI in recent years. Son has pushed hard on artificial intelligence, seeing it as the next big shift. Holdings like Arm Holdings, which designs computer chips, have done well as demand for AI hardware grows. OpenAI became a key piece, starting as a research project and turning into a leader with tools like ChatGPT.

SoftBank joined OpenAI funding rounds as the company built products for businesses and consumers. By December, its stake reached 11% after putting in $22.5 billion more. Private market trades have pushed OpenAI's value well past $150 billion, with talks of even higher figures in new rounds.

Key Details

The Vision Fund recorded a profit of 735.49 billion yen, or about $4.8 billion, for the quarter. This compared to a loss of 309.93 billion yen the year before. The $2.4 billion gain tied directly to OpenAI's valuation climb in private markets. Without it, losses from other bets would have dragged the fund down.

SoftBank as a whole posted a net profit of 248.59 billion yen, or $1.62 billion. That beat the prior year's net loss of 369.2 billion yen but fell short of some analyst hopes for 336.7 billion yen.

OpenAI's Role

OpenAI drove most of the good news. SoftBank is one of its top backers. The company is in talks for up to $30 billion more in a round that could value OpenAI at $830 billion if fully funded. ChatGPT's success has brought in huge revenue from users and companies adopting AI tools.

"The Vision Fund's performance shows how one strong investment can change the picture for the whole portfolio," said an analyst familiar with SoftBank's filings.

Other portfolio companies struggled. Many tech and logistics firms saw value drops amid slow growth and funding droughts.

Recent Moves

SoftBank made new buys to build for AI growth. In December, it agreed to purchase DigitalBridge Group for $4 billion, including debt. DigitalBridge manages assets in data centers, key for AI computing power. In October, it set a deal to buy ABB's robotics unit for $5.4 billion. The plan pairs robots with AI software for factories and warehouses.

Shares in SoftBank have climbed 9.5% this year after nearly doubling in 2025. Investors like the AI push and links to winners like Arm and OpenAI. Prime Minister Sanae Takaichi's recent win adds tailwinds, with pledges for more spending on AI and chips.

What This Means

The gain gives SoftBank breathing room after years of losses. It shows AI bets can deliver fast returns in a tough market for startups. Investors watch if OpenAI keeps leading or if rivals catch up.

For the Vision Fund, success now rests on a few names. OpenAI and Arm carry much of the load. If AI hype cools, or if other holdings fail to recover, losses could return. SoftBank must raise fresh cash to keep backing new deals.

Masayoshi Son faces less heat for now. His bold style drew fans and critics. The profit may help attract money for a third Vision Fund, though past funds still hold underperformers.

OpenAI's path matters too. A huge valuation brings pressure to prove business strength. SoftBank's extra investment talks signal confidence but also risk if growth slows.

Broader markets see this as a sign AI reshapes investing. Venture funds chase similar winners, but most lack SoftBank's scale. Data centers and robots point to AI spreading beyond software to hardware and infrastructure.

SoftBank's stock rise reflects wider optimism. Tech indexes track AI plays closely. If SoftBank keeps winning here, it could rebuild its image as a top dealmaker.

The company plans more updates in coming quarters. Investors await details on portfolio health and new AI progress. For now, the OpenAI lift stands as a bright spot in a mixed picture.