SoftBank Group Corp. has unveiled plans to become more aggressive in artificial intelligence and other sectors, following two consecutive quarters of profit and a significant increase in asset value, including Arm Holdings Plc. The Tokyo-based company exceeded expectations with its net income for the March quarter, driven by investment gains at the holding company and on derivative contracts. A surge in Arm’s stock price since its IPO last year has contributed to SoftBank’s net asset value reaching a record ¥27.8 trillion ($178 billion), nearly double the total from a year earlier. SoftBank’s Chief Financial Officer Yoshimitsu Goto stated that the company now has the financial capacity to pursue new strategic investments, emphasizing the importance of taking risks. SoftBank founder Masayoshi Son is refocusing on AI and semiconductors after facing setbacks with the Vision Fund, which is currently selling off and writing down assets in its portfolio. Son is reportedly seeking funding of up to $100 billion for a chip venture to compete with Nvidia Corp. and to supply semiconductors crucial for AI. SoftBank is also in discussions to acquire British semiconductor startup Graphcore Ltd. Goto highlighted that SoftBank’s loan-to-value ratio has decreased to 8.4%, near a record low, indicating a strong balance between risk and opportunity. However, he suggested that this level may be too conservative, hinting at the potential for more aggressive moves. In the March quarter, SoftBank recorded a net income of ¥231.1 billion, compared to a net loss of ¥57.6 billion a year ago. The Vision Fund reported an unexpected loss of ¥96.7 billion, attributed to markdowns in the valuations of several startups in its portfolio.
Source: finance.yahoo.com
