Japanese tech company SoftBank Group sees profit drop despite AI investments
TOKYO: Technology investor SoftBank Group Corp. reports an 18% drop in fiscal first-quarter profit as higher costs offset investment gains.
SoftBank Group, which invests aggressively in artificial intelligence, energy and robotics, recorded a ¥347.3 billion ($2.2 billion) profit for the April–June period, down from ¥421.8 billion a year earlier. Quarterly sales rose nearly 11% to ¥2 trillion ($12.7 billion).
Chief Financial Officer Yoshimitsu Goto told reporters that its business with Arm, a British semiconductor and software design company, was doing well.
Tokyo-based SoftBank has invested an additional $20 billion in OpenAI and plans further investments in the current fiscal year, he said.
SoftBank’s results tend to fluctuate because it invests in an array of companies through its Vision Fund, which backs fledgling technology. Such bets can produce big wins but also carry risks.
Among the companies SoftBank has invested in are ByteDance, the parent company of TikTok; US chip maker Intel Corp.; PayPay, a Japanese mobile payment and digital wallet service; and Taiwan Semiconductor Manufacturing Company, or TSMC.
The company, founded in 1981 by Chief Executive Masayoshi Son, began by investing in internet- and computer-related businesses. It has since added a variety of futuristic projects to its portfolio.
One area Son is focused on lately is autonomous driving. Another in the works is ABB Robotics, which focuses on automation, robotic arms and mobility.
SoftBank Group does not give annual forecasts. SoftBank Group shares finished 4% lower in Tokyo trading.
By RSS/AP
