Japan’s SoftBank Group reported a sharp rise in net profit for the second quarter, more than doubling to 2.5 trillion yen ($16.2 billion) in the July‑September period. The surge is largely tied to the boom in AI‑related share prices, which has also sparked concerns about a possible market bubble.
SoftBank, a major backer of ChatGPT‑maker OpenAI, has poured money into tech start‑ups and semiconductor firms, leading to volatile earnings. Optimism around AI technology has driven a wave of multi‑billion‑dollar deals and lifted tech shares worldwide. Since May, the Nasdaq index—heavy in tech stocks—has risen 25 %. Yet this rapid growth has revived fears of a bubble reminiscent of the dot‑com crash at the turn of the millennium.
In addition, SoftBank announced the sale of $5.8 billion worth of shares in US chip giant Nvidia last month, after the quarter ended. The reason for the sale was not disclosed, but speculation suggests it could be part of the company’s strategy to strengthen its influence in the AI field.
Founder Masayoshi Son has voiced strong belief in “artificial superintelligence” and its potential to transform technology and medicine. SoftBank’s stock has surged 140 % so far in 2025, driven by excitement over its exposure to OpenAI. Nonetheless, caution is warranted given the competitive landscape and the need for OpenAI to shift from a non‑profit to a for‑profit model.
SoftBank also unveiled plans to develop “physical AI” through the acquisition of Swiss‑Swedish firm ABB Robotics for nearly $5.4 billion. The AI stock boom carries significant implications for the tech industry and the global economy. As companies like SoftBank and Nvidia continue to invest in AI, the potential for growth and innovation is substantial, but the risk of a market bubble and the need for prudence remain important considerations.
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