SoftBank announced significant financial losses as it prepares for major investments in artificial intelligence. The focus is on the company's plans to support AI projects.
SoftBank Losses and Their Causes
The Japanese corporation SoftBank reported a $2.4 billion loss in its fiscal third quarter, surprising analysts who had predicted a $1.57 billion profit. The primary hit came from its Vision Funds investment arm, which lost $2.3 billion. Several equity investments, including South Korean Coupang and Chinese Didi, also saw valuation drops.
Planned AI Investments
CEO Masayoshi Son announced plans to invest significant funds into AI-based projects, including the Stargate project in the US, which is expected to receive up to $500 billion. The company also aims to acquire a substantial stake in OpenAI, potentially surpassing Microsoft's position. Additionally, SoftBank intends to launch a joint venture, 'SB OpenAI Japan', to market AI tools in its home market.
Europe and China's Position in AI
China continues to maintain its technological leadership by developing the DeepSeek model. Meanwhile, Europe faces challenges amid strict regulation. At the AI Action Summit, Emmanuel Macron announced a new €109 billion investment package to regain France's position in AI, but some experts remain concerned about bureaucracy and obstacles for startups in Europe.
While SoftBank faces financial challenges, it remains committed to an AI-focused strategy, which could potentially reshape the global tech landscape.
