Japanese tech company SoftBank Group sees profit drop despite AI investments
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TOKYO (AP) — Technology investor SoftBank Group Corp. reported Thursday an 18% drop in fiscal first quarter profit, as higher costs offset its investment gains.
SoftBank Group, which invests aggressively in artificial intelligence, energy and robotics, recorded a 347.3 billion yen ($2.2 billion) profit for the April-June period, down from 421.8 billion yen a year earlier.
Quarterly sales rose nearly 11% to 2 trillion yen ($12.7 billion).
Chief Financial Officer Yoshimitsu Goto told reporters that its business with Arm, a British semiconductor and software design company, was doing well.
Tokyo-based SoftBank has invested an additional $20 billion in OpenAI and plans more investments in the current fiscal year, he said.
SoftBank’s results tend to go up and down because it invests in an array of companies through its Vision Fund, which banks heavily on fledgling technology. Such bets tend to produce big wins, as well as carry risks.
Among the companies SoftBank has invested in are ByteDance, the parent company of TikTok; U.S. chip maker Intel Corp.; PayPay, a Japanese mobile payment and digital wallet service; and Taiwan Semiconductor Manufacturing Company, or TSMC.
The company, founded in 1981 by Chief Executive Masayoshi Son, began by investing in internet- and computer-related businesses. It’s since added a variety of futuristic projects under its wing.
One area Son is focused on lately is autonomous driving. Another in the works is ABB Robotics, which focuses on automation, robotic arms and mobility.
SoftBank Group does not give annual forecasts. SoftBank Group shares finished 4% lower in Tokyo trading.
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama