SoftBank Vision Fund Posts Another Loss as Tech Stocks Slide

SoftBank Group reported another challenging quarter, revealing a net loss of nearly $2.4 billion for its fiscal third quarter. A major contributor to the loss was its once high-flying investment arm, the SoftBank Vision Fund, which posted roughly $2 billion in losses during the same period.

The Vision Fund, known for backing some of the world’s biggest tech startups, has struggled recently as the value of several key investments declined. Shares of companies such as Coupang and Didi Global dropped during the quarter, weighing heavily on the fund’s overall performance.

For years, the Vision Fund was a symbol of SoftBank’s bold approach to investing in high-growth technology startups. It famously backed companies like Uber and DoorDash, helping them expand globally. But the environment for venture capital has shifted dramatically since 2022, when rising interest rates cooled investor enthusiasm for risky tech bets.

A Pivot Toward AI

Even as the Vision Fund struggles, SoftBank is looking ahead — and placing its biggest bets on artificial intelligence.

Recent reports suggest the company plans to invest $19 billion into the ambitious Stargate Project, a massive $500 billion AI initiative announced by the White House aimed at accelerating U.S. AI infrastructure development.

SoftBank is also reportedly preparing another enormous investment: $40 billion into OpenAI, the company behind ChatGPT. The deal would value the AI startup at around $260 billion, underscoring just how aggressively SoftBank is betting on the future of AI.

From “Defense Mode” to New Tech Bets

Back in mid-2023, SoftBank founder Masayoshi Son told investors the company would shift out of what he called “defense mode.” During that period, SoftBank slowed its startup investments while global venture capital funding dropped sharply.

Now, the company appears ready to move forward again, especially in areas like AI, robotics, and advanced computing.

Vision Fund Still Making Deals

Despite recent losses, the Vision Fund hasn’t stopped investing entirely.

This week, SoftBank joined Google Quantum AI in a $230 million funding round for QuEra Computing, a Boston-based company developing neutral-atom quantum computing technology.

The fund also participated in a $125 million Series C round for Tines, a startup focused on AI-powered workflow automation. That investment pushed Tines’ valuation to around $1.1 billion, making it the latest addition to the growing list of AI-focused companies attracting major venture funding.

While SoftBank’s Vision Fund continues to face short-term pressure, the company’s leadership appears convinced that AI and next-generation computing will define the next wave of technology — and they’re betting billions to make sure SoftBank remains part of that future.