SoftBank, a Japanese tech investor, made a profit in the second quarter of ’18. It is trying to improve its performance before it makes large investments in artificial-intelligence.
SoftBank has reported a net profit of 231bn (£1.18bn), compared to a loss of 57.6bn last year. Financial results were published on Monday.
The investor’s third annual loss, 227bn yen, was due to losses over the remainder of the financial year.
SoftBank has also seen big returns on its investments. This includes the UK chip designer Arm. Investors hope that this will be at the heart of the new AI-focused strategies led by CEO Masayoshi son.
SoftBank does not benefit from the gains in the value Arm, as it is a SoftBank subsidiary. However, the price of the shares listed at the Nasdaq in New York has risen by 60% in 2024. Nikkei Asia reported on Sunday that Arm intends to develop AI chip technology in order to launch its first products by 2025.
Son made SoftBank one of the most important investors in the world by betting on internet services. This included China’s ecommerce site Alibaba and as a distributor of mobile phones.
SoftBank Vision Funds, a tech-focused fund run by the outspoken executive, received Saudi Arabian backing. SoftBank’s companies were valued at astronomical levels during the coronavirus tech boom, but since the bubble burst, the company has been forced to retrench, despite Son’s unwavering belief in rapid technological advancements.
SoftBank led a funding round of $1bn (£800m), last week, into British self-driving tech company Wayve. Bloomberg reported that SoftBank is in negotiations to acquire British AI chipmaker Graphcore.
Son was expected to make further large investments if SoftBank remained profitable.
The Vision Funds, which are backed by Saudi Arabia, did not do as well as SoftBank’s other investments in the first quarter of this year. The value of the funds dropped by 115bn dollars, mainly because , a US-based office rental company, filed for Chapter 11 bankruptcy last November. Son, who had been vocally supporting, also backed the company.
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