SoftBank's Profit Beat Powered by Intel Stake, Not OpenAI
On Thursday, SoftBank Group Corp. announced a net income of 347.3 billion yen ($2.2 billion) for the first quarter, surpassing analysts' predictions, although this figure represents a decline of almost 18% compared to the same timeframe last year. The profit was primarily fueled by a 1.3 trillion yen increase in its Intel shares, while its significant investment in OpenAI showed no gains or losses during the quarter. These results underscore SoftBank's dependence on its investment portfolio for immediate profits rather than its AI initiatives.
Key facts
- SoftBank reported first-quarter net income of 347.3 billion yen ($2.2 billion).
- The profit beat analyst expectations.
- Net income fell nearly 18% year-over-year.
- A 1.3 trillion yen gain on Intel stock drove the profit.
- The OpenAI investment produced no recorded gain or loss in the quarter.
- The results were reported on Thursday.
- SoftBank's earnings were powered by its Intel stake, not OpenAI.
Entities
Institutions
- SoftBank Group Corp.
- Intel
Sources
- Quartz —