SoftBank reportedly wants to purchase $1.5 billion in OpenAI stock.It’s part of an effort by SoftBank Group CEO Masayoshi Son to strengthen the company’s stake in OpenAI and position it as an artificial intelligence (AI) leader, the Financial Times (FT) reported Wednesday (Nov. 27).SoftBank will purchase the shares via a tender offer, allowing current and former OpenAI employees who have held their stock for more than two years to sell, sources familiar with the situation told the FT.The tender offer prices ...

OpenAI is allowing employees to sell roughly $1.5 billion worth of shares in a new tender offer to SoftBank, CNBC has learned.The new financing will allow the Japanese tech conglomerate to get an even larger slice of the AI startup, and it will allow current and former OpenAI employees to cash out their shares, two people familiar with the matter told CNBC.Employees will have until Dec. 24 to decide if they want to participate in the new tender offer, which has not previously been reported, a person familia ...

Masayoshi Son recently suggested that investors are not pricing in Nvidia's future opportunities in the AI market.In my eyes, the most critical piece of infrastructure powering artificial intelligence (AI) is semiconductors. From storage to memory, quantum computing, machine learning, and a host of other generative AI applications, semiconductors represent the backbone supporting the broader AI thesis.If you've been following chipmakers over the last couple of years, then you will find it no surprise that N ...

Core Insights - SoftBank Group Corp. has experienced a volatile year, with a year-to-date stock increase of 43.22%, but faced significant declines due to concerns over high AI spending [1] - A new partnership with Nvidia could enhance SoftBank's position in AI and telecommunications, potentially leading to a surge in stock price [2][3] Financial Performance - SoftBank reported its largest quarterly profit in two years for Q2 2024, with net profits of $7.7 billion, surpassing analyst expectations of $1.87 billion and a loss of $6 billion in the same period last year [6] Strategic Developments - The partnership with Nvidia includes plans to build Japan's most powerful AI supercomputer and establish the country's first AI radio access network (AI-RAN), which will enable simultaneous AI and 5G workloads [3][4] - The AI-RAN initiative could transform SoftBank's 200,000 base stations into 'mini data centers', targeting sectors like scientific research, education, and startups [4] Market Reaction - Following the announcement of the Nvidia partnership, SoftBank's stock initially surged by 5.6% to $32.20 before stabilizing at $30.95 [8] - The potential for recurring revenue from AI-RAN servers is significant, with estimates of up to 219% return for each server added [7]

Core Insights - SoftBank reported a quarterly profit of $7.7 billion, a significant turnaround from a loss of $6 billion in the same period last year [3][4] - The company's success is attributed to gains in its tech investments, particularly in AI and public listings [2][7] Financial Performance - The profit of 1.18 trillion yen ($7.7 billion) marks a substantial recovery for SoftBank, which faced a loss of 931.1 billion yen ($6 billion) last year [3] - Vision Fund 1, a $98.6 billion investment vehicle, generated $3 billion in gains during the second quarter, benefiting from strong performances in its public portfolio [4][5] Investment Strategy - SoftBank's Vision Fund 2 made a $500 million investment in OpenAI and reported a $900 million gain in the quarter, driven by growth in companies like Revolut, which is now valued at $45 billion [5][6] - The company is preparing for a significant investment spree in AI, aiming for "artificial superintelligence" within a decade [7] Market Conditions - The CFO of Vision Funds noted that "macro tailwinds," including US interest rate cuts and stimulus measures in China, have positively impacted its public portfolio [5][6] - SoftBank sees potential for future IPO gains, with a late-stage portfolio valued at approximately $34 billion, including companies like ByteDance and PayPay [6]

The SoftBank Corp. logo displayed on a glass door of the company's store in Tokyo, Japan, on Wednesday, May 8, 2024. SoftBank Group Corp. is scheduled to announce its earnings figures on May 13. Photographer: Toru Hanai/Bloomberg via Getty Images Japanese giant SoftBank logged a 608.5 billion yen ($3.96 billion) gain on its Vision Fund tech investment arm in its fiscal second quarter ended Sept. 30, posting a steep quarterly increase after swinging back to black in the three months to June. The broader Visi ...

SoftBank CEO Masayoshi Son recently told investors that he thinks Nvidia stock is undervalued. Masayoshi Son is one of the most celebrated investors in modern history. As CEO of Japanese holding company SoftBank, Son has a rich history of architecting savvy investments across a host of different industry sectors. Sure, there have been some clunkers in SoftBank's portfolio (I'm looking at you, WeWork), but for the most part, Son seems to have a knack for identifying transformative technologies before they ta ...

SoftBank Group founder Masayoshi Son has outlined an ambitious timeline for the widespread adoption of artificial intelligence (AI), envisioning the advent of AI butlers in the near future. Speaking at an annual forum for corporate clients, Son described a future where AI can monitor family health, contact doctors when necessary, handle shopping and appointments, evaluate investment strategies, and even tutor children. He believes that general AI could become a reality within the next two to three years, al ...

Financial Data and Key Metrics - Consolidated revenue increased by JPY 172 billion (2.9%) year-on-year, reaching JPY 6.06 trillion, exceeding the upwardly revised forecast [5][23] - Adjusted EBITDA increased by JPY 100 billion year-on-year, driven by non-consumer segments [6] - Operating income rose by JPY 110.7 billion to JPY 876.1 billion, with all segments contributing to the increase [24] - Net income saw a significant increase due to higher operating income and the absence of impairment losses recorded in the previous year [30] - Free cash flow exceeded JPY 600 billion, with adjusted free cash flow at JPY 532 billion after accounting for long-term growth investments [15][51] Business Line Performance - **Consumer Segment**: Revenue decreased by JPY 59.1 billion, but segment income improved by JPY 33.1 billion due to reduced depreciation and revised sales promotion measures [7][10] - **Electricity Business**: Revenue declined by JPY 131.5 billion due to a decrease in electricity trading, impacting gross profit [8][11] - **Mobile Business**: Revenue increased by JPY 8.3 billion, driven by subscriber growth despite price reductions [8] - **Enterprise Segment**: Recurring revenue in Business Solutions grew steadily, contributing to a double-digit growth in segment income [12][28] - **Media & EC Segment**: Revenue increased by 3.4% to JPY 52.4 billion, with segment income up by JPY 38.2 billion (23.9%) due to cost optimization and strategic deconsolidation [13] - **Financial Segment**: PayPay's consolidated GMV grew by 22.2%, with standalone revenue up by 26.1%, though operating income remains negative [18] Market Performance - Smartphone subscribers increased by 1.4 million year-on-year, with a churn rate of 1.23% [17] - Broadband subscribers showed steady growth, while electricity subscribers continued to decline [17] - PayPay's user base grew by 6.4 million, with payment transactions increasing by 23.8% [52] Strategic Direction and Industry Competition - The company aims to achieve mid-term targets while investing in growth during FY 2024 and FY 2025, focusing on generative AI and other long-term growth areas [22][35] - CapEx for FY 2024 is projected at JPY 330 billion, with JPY 150 billion allocated for generative AI investments [35][74] - The company plans to maintain a dividend payout of JPY 86 per share, with a focus on achieving JPY 600 billion in free cash flow [36][51] Management Commentary on Operating Environment and Future Outlook - Management highlighted the positive impact of revised sales promotion measures and customer acquisition strategies on mobile revenue [25][27] - The company expects to achieve profitability in PayPay by FY 2025, with continuous growth in non-telecom GMV driving overall performance [18][52] - Management remains cautious about the impact of price reductions in the mobile segment but is optimistic about subscriber growth and ARPU improvements [17][81] Other Important Information - The company received several ESG-related awards and is focused on improving corporate governance by adding new external directors [19] - A stock split was announced to attract younger shareholders and enhance shareholder benefits [37] Q&A Session Summary Question: Generative AI Investment and R&D Costs - The company confirmed that JPY 30 billion is allocated for generative AI, with additional funds for other R&D initiatives [60][61] Question: Mobile Revenue and Acquisition Measures - Management expects mobile revenue to improve through subscriber growth and ARPU stabilization, with acquisition costs being absorbed by revenue increases [41][81] Question: Data Center Investments and Profitability - Investments in data centers, including Nara and Tomokomai, are part of the CapEx plan, with profitability expected in the long term [74][79] Question: CapEx Allocation and Dividend Policy - The company plans to maintain a balance between CapEx investments and dividend payouts, with JPY 330 billion allocated for telecommunications and generative AI [35][74] Question: PayPay's Path to Profitability - PayPay's EBITDA showed positive trends, and the company aims to achieve profitability in the new fiscal year [18][52]

= SoftBank | --- | --- | --- | --- | --- | |----------------------|-------|-------|-------|-------| | | | | | | | | | | | | | Earnings Results | | | | | | for the Fiscal Year | | | | | | Ended March 31, 2024 | | | | | May 9, 2024 SoftBank Corp. ©2024 SoftBank Corp. All Rights Reserved TSE code: 9434 Disclaimer Important Notice Regarding Forward Looking Statements and Other Information This document is based on the information available to SoftBank Corp. ("we" or "the Company") as of the time hereof and assu ...