SoftBank's OpenAI Investment Delivers Major Gains Amid Strategic AI Push
Japanese investment giant SoftBank Group has reported a significant financial boost from its strategic bet on artificial intelligence leader OpenAI. The company's Vision Fund posted a substantial gain of $2.4 billion during the December quarter, primarily fueled by a remarkable $4.2 billion increase in the value of its OpenAI investment.
Offsetting Losses with AI Success
This substantial gain effectively counterbalanced losses stemming from share price declines in other portfolio companies, including South Korean e-commerce platform Coupang and Chinese ride-hailing service Didi. SoftBank's fiscal third quarter, which concluded at the end of December, demonstrated how the company's focused AI strategy is beginning to yield concrete financial results.
SoftBank now holds approximately 11% of OpenAI, making it one of the investment firm's largest holdings alongside its roughly 90% stake in chip designer Arm Holdings Plc. This positioning reflects SoftBank's deliberate strategy to place itself at the center of artificial intelligence development through investments in what it believes will be category-defining companies.
Strategic Vision and Financial Caution
SoftBank Chief Financial Officer Yoshimitsu Goto explained the rationale behind the OpenAI investment, stating that it was based on comprehensive visibility into the startup's technology, business model, and direct communication with top management. "We are investing in OpenAI with high conviction that the company will lead in developing AI," Goto emphasized.
However, despite this confidence, SoftBank remains cautious about further financial commitments. When questioned about participating in OpenAI's reported new funding round of around $100 billion, Goto clarified that "nothing concrete has been decided" regarding additional investments. The company maintains a policy of keeping sufficient liquidity on hand to cover two years' worth of bond repayments.
Funding the AI Ambition
Investors have closely monitored how SoftBank plans to finance its continued investments in AI, particularly given OpenAI's current unprofitability. The Japanese conglomerate has been actively restructuring its portfolio to channel resources toward its AI priorities.
Recent strategic moves include:
- Complete divestment of its Nvidia stake for $5.83 billion in October
- Sale of $12.73 billion worth of T-Mobile stock between June and December
- Securing loans backed by other holdings, including chip designer Arm
- A $3 billion deal to acquire private equity firm DigitalBridge Group Inc
- Purchase of US chip designer Ampere Computing LLC for $6.5 billion
- Acquisition of ABB Ltd.'s robotics unit for $5.4 billion
Stargate Project and Strategic Shifts
SoftBank's AI ambitions extend beyond direct investments. The company had pursued a $50 billion acquisition of US data center operator Switch Inc., which analysts viewed as crucial for founder Masayoshi Son's Stargate AI infrastructure project. This initiative aims to generate computing power for partner OpenAI.
However, SoftBank reportedly abandoned these acquisition talks in January 2026, marking a setback for the Stargate Project. The deal would have provided direct control over Switch's network of energy-efficient data centers, potentially supporting former President Donald Trump's $500 billion Stargate initiative.
Masayoshi Son, Japan's wealthiest individual and SoftBank's visionary leader, had previously committed to deploying $100 billion "immediately" alongside OpenAI, Oracle, and Abu Dhabi's MGX following Trump's 2025 inauguration. This pledge underscores the scale of SoftBank's commitment to artificial intelligence development and infrastructure.
As OpenAI continues to shape the future of artificial intelligence, SoftBank's substantial stake positions the Japanese conglomerate to benefit significantly from the technology's evolution while navigating the complex financial landscape of funding cutting-edge, capital-intensive AI development.
