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SoftBank performance strengthens credibility of its AI vision

If founder Masayoshi Son were to find the next big AI winner, he would ensure the happiness of shareholders

SoftBank Group wants to build a happier future for all through artificial intelligence technologies. The Japanese tech investor has just posted its biggest quarterly profit in two years. That, combined with founder Masayoshi Son’s restraint in making risky investments in recent years, gives Son the cash and credibility to make a big bet on the next AI breakthrough.

SoftBank reported net income of ¥1.18tn ($7.7bn) for the latest quarter, higher than expected and a sharp turnaround from a net loss of ¥931bn last year. The Vision Fund reported a gain of ¥373bn thanks to the rising value of investments in China and India. 

India’s equity markets have played a significant role in the fund’s gains. Indian stocks staged a record rally this year and are still hovering near their highs. A frenzy in the local IPO market has helped SoftBank, with companies in its portfolio including e-scooter maker Ola Electric Mobility and online retailer Brainbees Solutions listing this year. Food-delivery app Swiggy’s $1.3bn IPO, which will start trading this month, was subscribed more than three times, and should add a further boost for the current quarter.

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