SoftBank Group on Thursday reported a net profit of 248.6 billion yen for the October-December quarter, equivalent to about $1.62 billion using the exchange rate cited in the report. That result contrasts with a net loss of 369 billion yen recorded in the same quarter a year earlier. The quarterly profit represents the conglomerate's fourth successive period in the black.
Company earnings were bolstered by a rising valuation of its investment in OpenAI. Over 2025, SoftBank increased its stake in the developer of ChatGPT and has now invested more than $30 billion in the firm, building a holding estimated at around 11 percent. The group has characterized the position as an "all-in" wager that OpenAI will emerge as a winner among competing large language model developers.
To fund its growing exposure to the AI developer, SoftBank has relied on a mix of financing actions. Those measures include selling assets, issuing bonds and taking out loans backed by other holdings such as chip designer Arm. Earlier financing steps also included selling a $5.8 billion holding in Nvidia and disposing of part of its stake in T-Mobile for $9.17 billion in the previous quarter.
Investors have expressed concern about the conglomerate's ability to continue financing its OpenAI commitments, particularly because OpenAI does not currently generate a profit. At the same time, OpenAI has been dealing with rising costs to train and run its AI models, a challenge that has grown as competition in the field intensifies - notably from companies such as Alphabet.
The report included the exchange rate used for dollar conversions: $1 = 153.2500 yen.
Context and implications
- SoftBank's improved quarterly result was driven largely by valuation gains on a single, high-conviction technology investment.
- The company has financed that position through an array of transactions that include selling portions of other major holdings.
- Rising operating costs at its AI investment and heightened competition in large language models add a layer of uncertainty to future returns.