TOKYO — Technology investment giant SoftBank Group Corp. announced Wednesday that its annual earnings surged almost five times higher compared to the previous year, driven by profitable artificial intelligence ventures.
The Tokyo-headquartered firm posted yearly earnings of 5 trillion yen ($32 billion), a dramatic increase from the prior year’s 1.15 trillion yen in profits.
Revenue grew approximately 8% year-over-year, reaching nearly 7.8 trillion yen ($50 billion) compared to 7.2 trillion yen previously, according to the company’s official statement.
The firm’s most profitable venture proved to be its stake in OpenAI, where SoftBank invested $34.6 billion and saw returns of $45 billion.
The investment company also holds positions in American AI corporation Nvidia, Germany’s Deutsche Telekom mobile and internet provider, and Britain’s Arm semiconductor company. SoftBank is additionally known for creating the Pepper humanoid robot.
The company received an extra boost from PayPay’s initial public stock offering, a widely-used mobile payment app in Japan that enables users to conduct fast, cashless transactions through QR code scanning.
Positive returns from Intel Corp. holdings helped balance out losses from investments in China’s Alibaba e-commerce platform.
These varied outcomes are characteristic of SoftBank’s performance, as the company was an early technology investor among Japanese firms and now manages an extensive portfolio through its Vision Funds program.
Masayoshi Son established SoftBank over 40 years ago and continues serving as CEO and chairman. The University of California alumnus has become a billionaire and is recognized as a trailblazer in Japan’s tech industry.
SoftBank has recently launched a battery venture in Japan focused on constructing advanced electric power systems to meet anticipated electricity demands from AI expansion.
The corporation is also collaborating with Toppan, a Japanese company specializing in printing, communications, security and packaging, to create lightweight, resilient aircraft wing materials expected to enter commercial use within three years.
SoftBank Group does not release earnings projections.
