{"text":[[{"start":8,"text":"SoftBank’s quarterly profits more than tripled, propelled by a $25bn surge in the value of its stake in ChatGPT maker OpenAI."}],[{"start":18.35,"text":"The Japanese tech conglomerate founded by Masayoshi Son said on Wednesday that net income for the three months to the end of March was ¥1.8tn ($11.6bn), vastly ahead of analysts’ expectations of ¥235.7bn, according to LSEG data. "}],[{"start":35.5,"text":"The result helped annual profits come in at ¥5tn, more than quadruple last year’s result."}],[{"start":42.25,"text":"SoftBank’s tech-heavy Vision Funds, which hold SoftBank’s roughly 13 per cent stake in OpenAI, made gains on investments of ¥3.1tn in the fourth quarter. "}],[{"start":53,"text":"Over the course of the financial year, SoftBank said it had recorded a cumulative gain on its stake in OpenAI of $45bn, with more than $25bn coming in the fourth quarter."}],[{"start":64.45,"text":"That helped the Vision Funds make up for losses elsewhere, including in some of its public positions including Coupang, DiDi and Grab Holdings."}],[{"start":74,"text":"By the time SoftBank has completed its $30bn investment into OpenAI, with the last tranche scheduled to be settled in October, the company said its cumulative investment would have reached $64.6bn."}],[{"start":86.85,"text":"Its initial investment in OpenAI was made at a valuation of $150bn in 2024. Last month, OpenAI closed a record funding round of up to $122bn that included SoftBank and valued the company at $852bn. "}],[{"start":104.14999999999999,"text":"SoftBank’s ability to participate in funding rounds that have increased OpenAI’s valuation, which can then boost the Japanese group’s numbers, has led some analysts to voice concerns. Atul Goyal at Jefferies has described the situation as “circular funding dynamics”."}],[{"start":120.5,"text":"“Of an estimated $70bn in actual cash raised by OpenAI over the past 12 months, approximately $60bn (close to 85 per cent) has come from SoftBank. This concentration creates a self-reinforcing valuation loop,” wrote Goyal in a note. "}],[{"start":137.3,"text":"The surge in value of OpenAI underlines the rapid rise of artificial intelligence in the global economy and explains Son’s ambitions to turn SoftBank into a central player in what he views as humanity’s next stage."}],[{"start":151.3,"text":"SoftBank shares are now approaching the peak they hit last year as investors pile into tech stocks. "}],[{"start":157.20000000000002,"text":"Before the recent rise, SoftBank shares had lost almost half their value, partly owing to concerns about its exposure to OpenAI, which has necessitated it taking on billions in debt."}],[{"start":168.35000000000002,"text":"Despite fears that OpenAI is facing growing competition from the likes of Google and Anthropic, analysts have been more positive since the release of its latest model. "}],[{"start":178.00000000000003,"text":"The performance of UK chip designer Arm, in which SoftBank has a roughly 90 per cent stake, has also helped, along with the group’s ambitions in the US, where it has significant data centre ambitions and plans to list an AI and robotics company."}],[{"start":201.30000000000004,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778665293_4973.mp3"}