SoftBank Group Corp. has reported a net loss of 369.17 billion yen (2.4billion) for the third quarter of fiscal year 2024, as its Vision Fund investments faced significant declines. The Japanese technology investor’s cash reserves also dropped to 4.7 trillion yen (30.6 billion) as of December 31, down from 6.2 trillion yen in March.
The Vision Fund recorded a loss of 352.75 billion yen (2.29billion) for the quarter, with Vision Fund 2 accounting for a (2.29billion) loss. Declines in portfolio companies like Coupang, Didi Global, and Ola Electric contributed to the downturn, though the IPO of Swiggy provided some relief.
SoftBank has responded by selling 2.98 billion in investments, including stakes in Door Dash and Sense Time. Despite the losses, the company remains committed to artificial intelligence (AI), with plans to invest up to 40 billion in OpenAI and $15 billion in Stargate, an AI data center project.
The drop in cash reserves and the unexpected loss highlight the challenges SoftBank faces as it seeks to balance its high-risk investment strategy with financial stability.
