SoftBank Group (SFTBY), a Japan-based tech investor, looks forward to investing in artificial intelligence (AI) companies due to the growing global interest in the space. In the past year, the company had been operating in a defensive mode as it incurred losses on several startup investments due to the slowdown in the technology sector.
Further, Softbank disposed of its investment in Alibaba Group (BABA) in the recently reported quarter. It is worth highlighting that Softbank invested ¥7.4 billion in Alibaba about 22 years ago, which resulted in a massive gain of ¥4.6 trillion.
The sale transaction is part of Softbank’s strategy to lessen its exposure to China. From roughly 50% three years ago, the corporation has steadily reduced its share of Chinese investments to 15% now. This enabled the corporation to geographically diversify through investments in the United States and Europe.
Yesterday, Softbank reported a much narrower year-over-year net loss of ¥970 billion for the fiscal year ended March 31. The performance was primarily marred by a ¥5.3 trillion loss on investments in the SoftBank Vision Funds segment.
Furthermore, the initial public offering of SoftBank-owned semiconductor company Arm is expected to strengthen the company’s balance sheet position and make cash available for new AI investments. SFTBY stock is down 10.8% so far in 2023.
