SoftBank’s CEO, Masayoshi Son, is fully committed to artificial intelligence. The Japanese corporation disclosed its financial results on Tuesday, announcing the sale of its complete stake in Nvidia for $5.8 billion. During the earnings call, SoftBank’s CFO discussed the concept of “physical AI” and expressed concerns about market bubbles. SoftBank’s strong focus on AI appears to be yielding positive results thus far.
In its second-quarter earnings report, the conglomerate revealed a significant increase in net profit to 2.5 trillion yen, equivalent to $16.6 billion. Additionally, it was revealed that SoftBank divested its Nvidia stake for $5.8 billion. Key insights from SoftBank’s earnings presentation shed light on the competitive landscape within the AI industry.
The decision to sell all 32.1 million shares in Nvidia last October was explained by CFO Yoshimitsu Goto as a strategic reallocation of funds towards OpenAI, emphasizing the substantial investment made in this area. The cumulative gain from SoftBank’s investment in OpenAI stands at approximately $7.7 billion.
Goto highlighted SoftBank’s 11% ownership in OpenAI and emphasized the company’s interest in advancing “physical AI,” which involves integrating artificial intelligence into physical applications like robotics and autonomous vehicles. Recent acquisitions by SoftBank include ABB’s robotics division for $5.4 billion and stakes in companies like Wayve and Bear Robotics.
Participation in projects such as Stargate underscores SoftBank’s commitment to AI infrastructure development, with Goto hinting at future financial disclosures once these initiatives are finalized. While concerns about an AI bubble persist due to significant capital inflows and high valuations, Goto remains optimistic about the sector’s growth potential.
Masayoshi Son has consistently championed AI as a strategic focus for SoftBank, a sentiment echoed by Goto during the recent earnings call. Despite acknowledging market volatility, Goto emphasised the importance of long-term value creation for investment firms like SoftBank amidst evolving technology trends and market dynamics.