SoftBank Group Corp. has reported a net loss of 369.17 billion yen ($2.4 billion) for the third quarter of fiscal year 2024, as declining valuations of its Vision Fund investments weighed on performance. The results, which missed analyst expectations, have prompted the Japanese technology investor to reassess its strategy.
The Vision Fund recorded a loss of 352.75 billion yen (2.29billion) for the quarter, with Vision Fund 2 accounting for a 2.9 billion loss. Declines in portfolio companies like Coupang, Didi Global, and Ola Electric contributed to the downturn, though the IPO of Swiggy provided some offset.
SoftBank has responded by selling 2.98 billion in investments, including stakes in Door Dash and SenseTime.The company’s cash reserves also dropped to 4.7 trillion yen 30.6 billion) as of December 31, down from 6.2 trillion yen in March.
Despite the challenges, SoftBank remains focused on artificial intelligence (AI). The company is reportedly in talks to invest up to 40 billion in OpenAI and has committed15 billion to Stargate, an AI data center project.
The losses underscore the risks of SoftBank’s high-stakes investment strategy, even as it seeks to pivot toward emerging technologies like AI.
