SoftBank Group Corp – ADR’s (OTC:SFTBY) plan to form a joint venture with OpenAI to deliver artificial intelligence services to corporate customers in Japan has fallen significantly behind schedule. The companies aimed initially to launch the venture this summer, but preparations have taken longer than expected. An update is likely by November, Reuters reported on Friday.
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SoftBank CEO Masayoshi Son announced the venture, SB OpenAI Japan, alongside OpenAI CEO Sam Altman in February. SoftBank said OpenAI and a company jointly established by SoftBank and its telecom unit would own the venture.
OpenAI is facing mounting financial strain as it struggles to meet its obligations under its $300 million agreement with Oracle. Reports indicated lack of funds to honor the deal, raising doubts about its future.
In August, SoftBank reported first-quarter net sales of 1.82 trillion yen ($12.54 billion), up from 1.70 trillion yen ($11.71 billion) a year earlier.
Also Read: SoftBank To Build $676 Million AI Data Center In Japan, Linked To OpenAI Partnership
Arm Holdings PLC – ADR (NASDAQ:ARM) sales rose 4% to 152.9 billion yen ($1.05 billion), but the unit posted a loss of 8.7 billion yen ($60 million) after higher R&D costs, reversing a 10.2 billion yen profit last year. SoftBank owns a controlling stake in the company.
SoftBank’s net income jumped to 421.8 billion yen ($2.91 billion), swinging from a 174.3 billion yen loss a year earlier. Gains on investments totaled 486.9 billion yen ($3.35 billion), led by Nvidia, offsetting losses on Alibaba and T-Mobile US.
The Vision Fund delivered a 660.2 billion yen ($4.55 billion) profit versus 32.4 billion yen a year ago, powered by rising share prices in holdings such as Coupang, Symbotic and Auto1.
SoftBank highlighted aggressive AI bets, including leading a $40 billion round into OpenAI, pursuing a $6.5 billion acquisition of Ampere Computing, and backing the $500 billion Stargate data center project in the U.S.
SoftBank’s $500 billion Stargate has also faced delays as it grappled with prolonged negotiations and site-selection decisions, CFO Yoshimitsu Goto said last month.
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