SoftBank Group’s latest quarterly results show how rapidly its investment model is changing. For April–June 2026, net profit fell 17.7% year on year to ¥347.3 billion, even as revenue rose 10.9% to ¥2.02 trillion. After investing $10 billion in OpenAI in April and another $10 billion in July, SoftBank is preparing a further $10 billion payment in October. Once completed, its total investment in OpenAI is expected to reach $64.6 billion.
These developments are closely connected. SoftBank is moving from a diversified portfolio of technology holdings toward a more concentrated system built around OpenAI, Arm, semiconductors, data centres, and energy infrastructure. It also increases the importance of a small number of assets to SoftBank’s valuation and financing capacity.
Investment Gains Remain Large, but Costs Are Rising
The decline in quarterly profit does not mean SoftBank’s investments performed poorly. The group recorded ¥1.86 trillion in investment gains during the quarter, almost four times the level of a year earlier. A revaluation of its Intel stake contributed ¥1.33 trillion, while the Vision Funds generated a positive result of ¥460.1 billion, helped by a higher valuation for ByteDance.
However, the cost of executing the strategy is rising quickly. Profit before tax fell 14.6% to ¥589.2 billion. Selling, general and administrative expenses increased by almost 70% to ¥1.29 trillion, while finance costs nearly doubled to ¥328.7 billion. The group also recorded a ¥146.1 billion foreign-exchange loss and a ¥391.6 billion derivatives loss.
The computing technologies segment shows the same tension. Revenue from Arm, Ampere, and Graphcore rose 30.2% to ¥175.3 billion, but the segment’s pre-tax loss widened from ¥32.4 billion to ¥200.8 billion. Expansion is creating growth, but also significant costs before stable cash flow appears.
OpenAI Is Becoming a Core Asset
By the end of June 2026, SoftBank had invested $44.6 billion in OpenAI. The fair value of that holding was reported at $89.6 billion, implying cumulative valuation gains of about $45 billion. The second $10 billion payment was made on July 1 and therefore did not appear in the June balance sheet. A third $10 billion payment is planned for October.
After the final payment, SoftBank’s total investment is expected to reach $64.6 billion, giving the group an approximately 13% stake in OpenAI. The latest round is based on a pre-money valuation of $730 billion. At this scale, OpenAI is becoming a central pillar of SoftBank’s AI strategy.
AI adoption requires models, processors, computing capacity, data centres, and electricity. SoftBank is trying to participate across several of these layers rather than depend on one source of return. The challenge is that all of them rely on the same condition: AI spending must generate enough commercial value to justify continued investment.
Arm Is Strengthening the Balance Sheet
SoftBank’s financial flexibility currently depends heavily on Arm. The group’s net asset value rose from ¥40.1 trillion at the end of March to ¥72.3 trillion at the end of June, driven largely by Arm’s share price. The adjusted loan-to-value ratio fell from 17% to 13%, well below SoftBank’s normal ceiling of 25%.
This gives the group room to borrow, but it also creates concentration risk. A high Arm valuation supports financing capacity, while a sharp decline would reduce the value of SoftBank’s assets without necessarily reducing its debt. Arm is therefore both an operating asset and a financial foundation for the wider strategy.
Debt Connects the Risks
SoftBank is financing much of its OpenAI commitment with borrowed funds. In March, it arranged a $40 billion bridge facility. It drew $10 billion in April and another $10 billion in July, with a further $10 billion expected before the October payment. The financing is intended to be repaid or refinanced before the bridge expires in March 2027.
Higher leverage is already visible. Interest costs at the parent company more than doubled to ¥265.8 billion. Cash declined from ¥3.5 trillion to ¥2.3 trillion during the quarter, although SoftBank says its liquidity still covers at least two years of bond redemptions.
The main risk may not be a sudden collapse in AI valuations, but a prolonged period in which revenue grows while cash returns remain weak. OpenAI could expand rapidly and still require further capital. Data centres could stay in high demand but take longer to earn acceptable returns. Arm could increase sales while development costs also rise.
For investors, the key question is whether SoftBank can convert rising valuations in OpenAI and Arm into durable cash flows before financing costs limit strategic flexibility. The group is no longer making a narrow bet on one AI company. It is making a leveraged bet on the infrastructure of the AI economy itself.