SoftBank is betting on AI and an IPO revival after swinging to a $7.7 billion profit

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]