SoftBank posts $46 billion gain at Vision Fund driven by OpenAI bet

SoftBank It has generated $46 billion in annual gains in its Vision Fund due to the huge increase in the value of its investment in OpenAI.

The Japanese giant invested more than $30 billion in OpenAI, and investment gains in the company totaled $45 billion in the year ending March.

In the three months to the end of March, the Vision Fund generated nearly $20 billion; Almost all of this gain came from OpenAI, as SoftBank incurred losses on other investments. CoupangDiDi Global and Klarna.

SoftBank is trying to position itself at the center of the AI ​​boom with its investments in various AI and chip companies, with Sam Altman’s OpenAI forming the centerpiece.

SoftBank said in February that it had committed to investing more than $60 billion in OpenAI, which would result in it owning about 13% of the company. More than $30 billion of this has already been invested.

In March, OpenAI closed a funding round co-led by SoftBank that valued its AI lab at $852 billion.

While OpenAI’s rising valuation has helped SoftBank’s Vision Fund, OpenAI’s concentration in SoftBank’s portfolio has raised concerns about its debt burden. In March, S&P Global Ratings revised SoftBank’s outlook from “stable” to “negative.”

The rating agency said SoftBank’s “asset liquidity and the quality of its portfolio as well as its financial capacity are likely to deteriorate due to its large additional investment in OpenAI.”

The rating agency said SoftBank could “limit adverse financial impacts” by selling some assets. In fact, SoftBank is selling shares of companies like T-Mobile and Nvidia To fund the OpenAI bet.

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