SoftBank OpenAI Investment Boosts Q2 Profit

SoftBank Group (SFTBF, SFTBY) said on Nov. 11, 2025, that its OpenAI investment helped drive a record quarterly profit, as a Vision Fund valuation gain lifted results even while shares slid amid investor concern about an AI bubble.

Vision Fund Valuation Drives Record Profit

SoftBank reported a net profit of ¥2.5 trillion ($16.6 billion) for the quarter ended Sept. 30, 2025, far exceeding an LSEG consensus of ¥207 billion. The gain was largely driven by a ¥3.5 trillion Vision Fund valuation increase, with ¥2.16 trillion attributable to OpenAI holdings. This included an unrealized valuation gain of ¥980.5 billion and a derivative gain of ¥1.18 trillion from the OpenAI Forward Contract, reflecting fair-value marks rather than realized sales.

Operationally, revenue rose 7.7% year over year to ¥3.74 trillion. Non-telecom businesses accounted for 63% of revenue, up from 47% a year earlier. Operating income reached ¥628.9 billion, while SoftBank Corp.’s segment net income was ¥348.8 billion. Management continues to shift strategically toward AI and cloud services, including joint ventures linked to OpenAI in Japan.

OpenAI Follow-On Investment and Outlook

On March 31, 2025, SoftBank signed a definitive agreement to invest up to $40 billion in OpenAI Global, with $10 billion syndicated to co-investors and $30 billion retained by SoftBank. The first closing in April 2025 provided $10 billion, with $7.5 billion invested by SoftBank Vision Fund 2 (SVF2) and $2.5 billion syndicated. An amended agreement in October 2025 allows SoftBank to make the full second-closing investment regardless of certain conditions.

OpenAI completed a recapitalization on Oct. 28, 2025, transitioning to OpenAI Group PBC. SoftBank plans a second closing in December 2025 to invest an additional $22.5 billion via SVF2, subject to syndication and agreed conditions. Since inception, SVF1 has generated $32.8 billion in gains, while SVF2 carries a $9.1 billion cumulative loss excluding recent OpenAI gains.

Despite the record profit, SoftBank’s shares declined amid investor concerns about the sustainability of AI valuations and a potential “AI bubble.” The company’s filings disclosed no material regulatory impediments as of Nov. 11, 2025.

“Investment gains totaling ¥2,156.7 billion from the investment in OpenAI,” SoftBank said in its Q2 financial report. “This includes an unrealized valuation gain of ¥980.5 billion resulting from an increase in the fair value of the equity interests and a derivative gain of ¥1,176.2 billion arising from an increase in the fair value of the OpenAI Forward Contract.”