Thursday, February 29, 2024

Creating liberating content

Windows 11 build 26063...

The operating system now supports Wi-Fi 7, which brings wireless speeds of...

Waymo’s application to expand...

Waymo’s application to expand its robotaxi service in Los Angeles and San...

Neuralink’s First Brain Implant...

Some Neuralink rivals, such as Precision Neuroscience, are developing implants that sit...
HomeTechnologySoftBank posts loss,...

SoftBank posts loss, with a cumulative loss of $6.3B in its Vision Fund business


As SoftBank prepares to dive deeper into AI investments, the group posted an unexpected consecutive quarterly overall loss, as well as a continued loss in its existing investment business. SoftBank’s Vision Fund 1 and 2 and its Latin American fund together posted a quarterly investment loss of 13 billion yen ($91 million). That is significantly less than the 2,919 billion yen loss a year ago ($20 billion) but cumulatively, the company said that investments across the three funds, as of June 30, are still totalling to a $6.3 billion loss. Overall, SoftBank Group posted a net loss of 477.6 billion yen ($3.3 billion) — a surprise, as investment analysts were widely expecting a return to profitability this quarter.

“We are carefully and slowly moving back to investment activities,” CFO Yoshimitsu Goto said in the presentation today, adding that it would “keep focusing on the AI trend.”

The company said that its total commitments across the Vision Funds 1 and 2 and its LatAm fund is $166.2 billion. It calculated its acquisition costs as $146.6 billion, and fair value of the assets currently as $140.3 billion.

SoftBank said that its Vision Fund 1 and 2 respectively had quarterly losses of 38.749 billion yen and 46.860 billion yen, while the LatAm fund had a gain of 47.496 billion and other investments 25.070 billion on ‘other investments. The Latin American business had a boost largely from the sale of Pismo, one of SoftBank’s portfolio companies, to Visa for $1 billion in June.

Further dragged down by share price declines in holdings in Alibaba, Deutsche Telekom and T-Mobile US, SoftBank’s overall total loss on investments in the quarter was 699 billion yen (approaching $4.9 billion).

SoftBank has made significantly more headway in activity from its first, older Vision Fund. The company said that of the 94 investments it made out of the nearly $90 billion fund, “fair value” is split between some $37.5 billion in private companies, $20.5 billion in public companies, and $44.2 billion in exits. Fair value from its $108 billion Vision Fund 2 stands at just $32.2 billion.

SoftBank added that some 94% of its portfolio companies from across all of its funds currently have a cash runway of more than 12 months.

We’re listening to the presentation to hear what SoftBank has to say about Arm and its AI investments and will update this post with more.

Last week, the company’s Japanese subsidiary, also called SoftBank and overseeing its domestic business, launched a new business called SB Intuitions, which will build a Large Language Model and generative AI services focused specifically on Japanese and Japan’s businesses and consumers.

 



Source link

Continue reading

Windows 11 build 26063 adds official support for Wi-Fi 7

The operating system now supports Wi-Fi 7, which brings wireless speeds of over 40 Gbps. Build 26063 also updates Copilot with more actions to...

Waymo’s application to expand California robotaxi operations paused by regulators

Waymo’s application to expand its robotaxi service in Los Angeles and San Mateo counties has been suspended for 120 days by the California...