SoftBank’s Vision Fund on Tuesday posted a loss in the fiscal year that ended in March. The company had incurred a pretax loss of 115.02 billion yen or $777.7 million. On the other hand, it had incurred a profit of 128.2 billion yen in the previous fiscal year.
SoftBank said it notched a gain on investment at its Vision Funds of 434.9 billion yen in the fiscal year, a 40% fall from the 724.3 billion yen booked in the previous year.
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SoftBank’s Vision Fund segment recorded a gain of 26.1 billion yen in its fourth fiscal quarter, led by a rise in the value of TikTok owner ByteDance. In the latest fiscal year, the Japanese investment company saw gains on its investments in Chinese ridehailing company Didi as well as South Korean e-commerce firm Coupang. However, there was also a drop in the value of companies, including Autostore, because of which the performance of the investment arm was hurt.
SoftBank’s Vision Fund is a venture capital fund founded in 2017. It is managed by SoftBank Investment Advisers, a subsidiary of the SoftBank Group, and has over $100 billion in capital. This makes it the world’s largest technology-focused investment fund.
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The Vision Funds are a key focus for investors who are looking for signs of improvement at SoftBank’s huge investment arm after it saw an unexpected loss in the company’s third fiscal quarter. SoftBank’s investment division is driven by changes in public and private financial markets, and so it can be quite inconsistent. SoftBank’s stock is down about 17% this year as volatility in financial markets and concerns about the macroeconomic environment continues to affect the company.
This comes amid reports that SoftBank and OpenAI’s joint venture Stargate Project is stalling. The Stargate Project was a much-hyped venture announced in January, which involved a $100 billion investment to build state-of-the-art AI infrastructure. However, this project appears to be stalling due to economic risks related to U.S. tariffs.