SoftBank Group reported a significant increase in profits for the fiscal year ending in March, with earnings zooming nearly five-fold as its investments in artificial intelligence paid off. The company's Vision Fund booked a yearly gain of $46 billion, driven largely by the substantial rise in value of its investment in OpenAI.
For the fiscal fourth quarter, the technology investor recorded a surprise rise in profit, reporting a net income of ¥1.83 trillion ($11.6 billion). This figure significantly exceeded the average analyst estimate of ¥295.2 billion, with valuation gains from OpenAI contributing to the robust results.
To fund its bold AI investments, SoftBank has issued debt, sold stakes in various companies, and borrowed against its assets, including its stake in Arm Holdings. While the company continues to benefit from its growing OpenAI bet, concerns are increasing over the level of debt being taken on to support these investments.