Softbank’s Vision Fund business faced a loss in the fiscal year that ended in March due to slowing gains in its tech investment arm. The gain on investment at the Vision Funds dropped by 40% to 434.9 billion yen compared to the previous year’s 724.3 billion yen.
In the fiscal fourth quarter, the Vision Funds segment recorded a 26.1 billion yen gain, driven by the rise in ByteDance’s value, the owner of TikTok. However, the overall pretax loss for the Vision Fund segment was 115.02 billion yen ($777.7 million), a significant decrease from the previous fiscal year’s profit of 128.2 billion yen.
SoftBank saw gains on investments in companies like Didi and Coupang, but the drop in AutoStore’s value affected the performance of its investment arm. Investors are closely monitoring the Vision Funds for signs of improvement after the unexpected loss in the company’s fiscal third quarter.
SoftBank founder Masayoshi Son has positioned the company as a major player in artificial intelligence through various investments and acquisitions. One of the significant AI bets is on OpenAI, where SoftBank invested $30 billion as part of a broader financing round. The firm is also involved in the Stargate joint venture, announced by President Donald Trump, which calls for massive investments in AI infrastructure.
Despite reports of banks hesitating to fund SoftBank’s efforts, the chief finance officer, Yoshimitsu Goto, stated that the company is making progress. Around 100 proposals are being considered for building data centers as part of the Stargate project, with the first facilities likely to be in Texas.
SoftBank posted its first annual profit in four years, reaching 1.15 trillion yen. While the Vision Fund had a negative impact on profit, older investments in companies like Alibaba, T-Mobile, and Deutsche Telekom contributed positively. Arm and SoftBank’s telecommunications business also played a role in driving overall profitability.
As SoftBank navigates the challenges in its investment arm, the company remains focused on its AI ventures and strategic acquisitions. The performance of the Vision Funds will continue to be a key indicator for investors, as SoftBank aims to maintain its position as a leader in the technology and AI space.
