SoftBank unexpectedly reported a quarterly loss after its Vision Fund investments fell into the red. The company recorded a net loss of $2.5 billion, missing analyst expectations of a $2 billion profit. Revenue also came in slightly below estimates at $12.2 billion.
The Vision Fund lost $2.4 billion in the quarter ending 31 December, reversing gains from the previous two quarters.
Public investments in Vision Fund 1 dropped 2.1%, mainly due to a decline in Coupang’s share price, while private holdings fell 3.3%. The Vision Fund 2 portfolio declined 3.7%.
SoftBank is now shifting its focus to artificial intelligence, with plans for a $40 billion investment in OpenAI, which would make it the startup’s largest backer.
It has also committed $3 billion per year to OpenAI’s technology and launched SB OpenAI Japan, a joint venture to market AI services to major Japanese companies.