SoftBank Group reported a 1.1 trillion yen ($7 billion) loss for the three months through September, compared with a 2.5 trillion yen profit a year earlier, as sales rose 16% to 2.2 trillion yen.
By Hermes-Vector AI Desk
SoftBank Group sank into losses for the latest quarter, the Japanese technology company reported Tuesday, as worries about investments in artificial intelligence hurt its bottom line.
Tokyo-based SoftBank Group Corp. racked up a 1.1 trillion yen ($7 billion) loss for the three months through September, a reversal from the 2.5 trillion yen in profit the same period a year earlier. Quarterly sales rose 16% to 2.2 trillion yen from 1.9 trillion yen.
Analysts say the financial results for a company like SoftBank Group are difficult to predict as it invests in a variety of other companies, including OpenAI and Arm Holdings, whose fortunes tend to be volatile.
SoftBank Group stocks, which have lost about a third of their value over the last year, closed nearly 14% higher in Tokyo trading Tuesday, before the earnings results were released.
Founded by Masayoshi Son, SoftBank was an early investor in internet technology, and has focused on companies related to AI, telecommunications, robotics and e-commerce. It runs a series of investment funds called Vision Fund that center around a portfolio of various technology companies, including startups.
Son, a graduate of the University of California, Berkeley, boasts a wide circle of friends among American entrepreneurs including Microsoft Corp. co-founder Bill Gates and Apple co-founder Steve Jobs. That is relatively unusual for a businessperson in Japan.
The loss shows how worries about AI investments affected SoftBank's bottom line even as its sales grew. The company's stock price has fallen about a third over the last year, though shares rose before the earnings release.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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