Japanese technology investor SoftBank (TYO:9984) Group booked a surprising net loss of 369.2 billion yen ($2.4 billion) in the October-December quarter as valuations at its Vision Fund investment arm fell.
In particular, SoftBank was hit by unrealised valuation losses for South Korean e-commerce platform Coupang, Chinese ride-hailing firm Didi Global and AutoStore Holdings (OL:AUTO).
The result will further raise questions about how SoftBank will fund one of its most ambitious undertakings - a hefty investment in OpenAI.
Cash and cash equivalents dropped to 4.7 trillion yen ($30.6 billion) as of end-December from 6.2 trillion yen in March which was the end of the previous financial year.
Sources said in January that SoftBank was in talks to invest up to $25 billion in the ChatGPT creator. Recent media reports have said that figure has grown to $40 billion though some of that amount would later be syndicated out to other investors.
SoftBank has also committed to investing $15 billion in Stargate - a venture with OpenAI and Oracle (NYSE:ORCL) that will build AI data centre capacity in the United States and which has been backed by U.S. President Donald Trump.
The announcements mark a return to the aggressive SoftBank of old which rocked the technology investment world by taking big bets on startups through its Vision Funds.
The third-quarter result compares to an LSEG consensus estimate of a net profit of 234 billion yen drawn from four analysts and a profit of 950 billion yen in the same period a year earlier.
The Vision Fund unit posted an investment loss of 352.7 billion yen, breaking a run of two consecutive quarters in the black.
Vision Fund 1 has had a gross gain of $21.6 billion since its inception in 2017 while Vision Fund 2, which covers a broad suite of earlier-stage startups, has logged a $22.2 billion loss since 2019.
($1 = 153.6000 yen)
