SoftBank’s All-In on OpenAI Pays Off: Valuation Hits Record Highs

SoftBank’s All-In on OpenAI Pays Off: Valuation Hits Record Highs

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Gotrade News - SoftBank is officially back in the green, courtesy of Masayoshi Son’s massive gamble on artificial intelligence. This momentum serves as early proof that their aggressive strategy is paying off in the cutthroat global tech landscape.

Recent financials show the company swung to a $1.6 billion profit last winter quarter. That’s a solid turnaround from the $2.4 billion loss they ate during the same period a year ago.

Key Takeaways:

  • SoftBank bagged a US$1.6 billion profit, fueled by soaring valuations in its OpenAI investment.

  • Masayoshi Son is plotting to inject another US$30 billion in the upcoming funding round.

  • Assets in Nvidia and T-Mobile US were sold off to go all-in on the AI ecosystem.

Masayoshi Son has already steered SoftBank to pour a total of US$34 billion into the ChatGPT creator. But he’s not done yet—management is still cooking up plans for further capital injection.

The Financial Times reports that SoftBank is eyeing an additional investment of up to US$30 billion in the next round. This massive figure signals Son’s absolute conviction in OpenAI’s future dominance.

OpenAI’s valuation is expected to skyrocket to a staggering US$750 billion post-raise. This super-high valuation expectation has already helped double SoftBank’s stock price over the last 12 months.

The strategy is backed by a wider ecosystem, including a majority stake in chip designer Arm Holdings. They’ve also scooped up robotics firms and AI-focused asset managers to beef up their tech infrastructure.

Management stated that 60% of the company’s assets are now tied to the vision of "Artificial Superintelligence" (ASI). This future tech is described as being 10,000 times smarter than human capabilities.

SoftBank is also in the mix for the US$500 million Stargate initiative backed by US political figures. The project aims to build the massive AI infrastructure crucial for future tech development.

Son didn’t hesitate to liquidate other major assets to smooth the path for this singular ambition. Management sold off US$5.8 billion in Nvidia and trimmed their position in T-Mobile US.

This aggressive move is still a high-wire act, considering the massive new debt the company took on. SoftBank reportedly took on US$27 billion in debt during the winter quarter to fund these maneuvers.

Investors need to watch closely whether this single massive bet on OpenAI can outrun the volatility of the tech market. History shows Son has scored massive wins, but he’s also taken some serious hits in the past.

That’s the market update worth watching today. Follow Gotrade News for timely coverage on US stocks, ETFs, and macro moves that shape market direction. For a structured starter guide, visit the Gotrade Blog to learn the basics and build your plan.

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Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.


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