Softbank bets everything on OpenAI and racks up record profits

Elon Musk predicted it again: artificial intelligence will generate billions. But this future, according to him, is yet to come. Not for Softbank. For the Japanese giant, the billions are already here, and AI is no longer a promise, but a reality. In just a few months, the company has turned a bold bet into a historic jackpot. And while others hesitate, Softbank is charging headlong into the AI revolution, ready to become its global pillar.

OpenAI: the nugget that pays more than a crypto jackpot

The AI news: in September 2024, Softbank joined the capital of OpenAI. Since then, it’s been euphoria. Result: 19 billion dollars earned in a single quarter thanks to its participation in the Vision Fund. CFO Yoshimitsu Goto sums up this performance bluntly:

The reason we were able to achieve this result is thanks to last September: that’s when we first invested in OpenAI. 

With a valuation that jumped to 500 billion dollars, OpenAI surpasses many star cryptos like Ethereum. But for Softbank, the most impressive isn’t the figure: it’s the speed.

Masayoshi Son, the founder of Softbank, does not hide his ambition: to become a key player in artificial intelligence. He claims that AI will transform all industries and lifestyles.

The group is not just betting on a gamble: it is building long-term dominance.

Sell Nvidia to buy the future: Softbank liquidates to bet on AI

To keep up the pace, Softbank had to find cash. In October, it sold 32.1 million Nvidia shares, cashing in 5.83 billion dollars. At the same time, part of its stake in T-Mobile was sold for 9.17 billion.

But that’s not all. Two bridge loans (8.5 and 6.5 billion), and bonds in dollars, euros, and yen, inflate the envelope. In total, more than 20 billion raised for a single target: OpenAI.

Declared goal: to invest 34.7 billion dollars in AI via Vision Fund 2 by December. At this stage, even Meta and Google seem timid.

Softbank does not want to miss the train:

Opinions are divided, but SoftBank’s position is that the risk of not investing is much greater than that of investing.

Yoshimitsu Goto, Softbank Chief Financial Officer.

And never mind if some talk about a bubble. For Son, it’s better to risk big than stay a spectator.

Dizzying figures, market tensions, and dream of total AI

The results are staggering: 2,500 billion yen net profit in one quarter. Yet, as soon as these figures were announced, Softbank lost 50 billion in market capitalization. Volatility is at maximum.

Yet, the vision remains clear. Softbank partners with OpenAI and Oracle to build 5 mega data centers in the United States. The objective: provide 7 GW for AI. That is 400 billion dollars investment over 3 years. Unprecedented.

Meanwhile, other major groups like Amazon or Google hesitate. Too risky? Maybe. But for Softbank, it’s now or never.

What to remember in 5 points

• Softbank has doubled its quarterly profits to 2,500 billion yen;
• OpenAI generated 93% annual growth on AI revenues;
• OpenAI valuation: 500 billion dollars;
• Softbank plans 34.7 billion $ AI investment by end of 2025;
• The 4-for-1 stock split makes its shares accessible to the general public.

But not everything is rosy. Recently, a lawsuit was filed against OpenAI. It accuses GPT-4o in cases of suicides. A tragic matter that reminds us that even the most promising technologies can have a human cost. For Softbank as for AI in general, the real challenge remains: grow without slipping.