Quick Facts / Company Snapshot
- Corporate Name: SoftBank Group Corp.
- Founded: September 3, 1981
- Founder: Masayoshi Son
- Headquarters: 1-7-1, Kaigan, Minato-ku, Tokyo, Japan
- Core Philosophy: Information Revolution — Happiness for everyone
- Net Sales (Fiscal 2024): 7,243,752 million yen
- Net Income Attributable to Owners (Fiscal 2024): 1,153,332 million yen
- Net Asset Value (NAV): 25.7 trillion yen (as of March 31, 2025)
- Loan to Value (LTV) Ratio: 18.0% (as of March 31, 2025)
- Total Assets: 45,013,756 million yen
- Total Equity: 13,953,026 million yen
- Cash Position: 3.7 trillion yen (as of March 31, 2025)
- Number of Employees (Consolidated): 67,229
- Number of Subsidiaries: 965
- Number of Portfolio Companies (SVF): Over 400
- Key Subsidiary: Arm Holdings plc (87.3% ownership)
- Key Subsidiary: SoftBank Corp. (40.3% ownership)
- Strategic Focus: Artificial Super Intelligence (ASI)
- Stock Exchange Listing: Tokyo Stock Exchange (Prime Market: 9984)
Company Overview
SoftBank Group Corp. (SBG) operates as a strategic investment holding company dedicated to driving the Information Revolution. The organization is fundamentally guided by its unchanging corporate philosophy: “Information Revolution — Happiness for everyone.” This mission underscores a commitment to harnessing the limitless potential of information technology to create a society where people are connected, empowered, and joyful.
The Group views the current technological landscape as standing on the cusp of the Artificial Super Intelligence (ASI) era—a phase where artificial intelligence surpasses human capabilities across all domains. Consequently, the company has pivoted its overarching strategy to become the world’s leading ASI platform provider. This vision involves building a comprehensive ecosystem that spans AI infrastructure, semiconductors, robotics, and energy solutions necessary to power the next generation of computing.
Operating under a unique “Cluster of No. 1 Strategy,” the company builds a strategically synergized ecosystem of group companies. Rather than a traditional centralized conglomerate model, this strategy fosters a symbiotic group of enterprises, each possessing industry-shaping technologies and business models. The organization respects the autonomy of these visionary entrepreneurs while encouraging collaboration to unlock synergistic growth.
Capital allocation is driven by a model utilizing three inputs: an ecosystem of portfolio companies, financial capital, and human capital. The company acts as a visionary capitalist, identifying and investing in companies with the potential to reshape the world over the next 300 years. With a focus on the long-term, the Group aims to contribute to solving global challenges such as climate change and educational inequality while delivering sustainable growth in Net Asset Value (NAV).
Business Segments
1. SoftBank Segment
Revenue: 6,544.3 billion yen Percentage of Total Revenue: 90.34%
The SoftBank Segment represents the core domestic telecommunications and IT services business. Operated primarily through the subsidiary SoftBank Corp., this segment is the largest revenue contributor to the Group. It encompasses a diverse range of services including mobile communications, broadband services, and electricity distribution in Japan.
Beyond traditional connectivity, this segment includes the operations of LY Corporation, which manages the widely used messaging app LINE and the internet portal Yahoo! JAPAN. This integration allows the segment to dominate the media and e-commerce landscapes in Japan.
Additionally, the segment includes the financial technology business, spearheaded by PayPay Corporation. PayPay has established itself as a leading cashless payment service, driving the segment’s expansion into the financial sector. The segment’s “Beyond Carrier” strategy aims to expand business domains by leveraging the customer base and touchpoints established through the telecommunications business to deliver innovative services in AI, IoT, and smart logistics.
2. Arm Segment
Revenue: 464.0 billion yen Percentage of Total Revenue: 6.41%
The Arm Segment comprises the operations of Arm Holdings plc, a global leader in semiconductor intellectual property (IP). Arm designs energy-efficient microprocessors and associated technologies that are licensed to semiconductor companies and original equipment manufacturers (OEMs).
Arm’s technology is the architectural foundation for the majority of the world’s mobile devices and is increasingly pervasive in cloud computing, automotive systems, and Internet of Things (IoT) devices. The segment generates revenue through two primary streams: licensing fees paid by partners to access Arm’s technology, and royalty fees collected on every chip shipped that contains Arm IP.
This segment is critical to the Group’s ASI strategy. Arm is aggressively expanding its portfolio to include AI-specific compute platforms, such as the Arm Compute Subsystems (CSS), which integrate CPU and GPU technologies to handle complex AI workloads. The segment is also deepening its engagement in the data center market, where its energy-efficient designs are vital for sustainable AI computing.
3. Other Segment
Revenue: 225.0 billion yen Percentage of Total Revenue: 3.11%
The Other Segment includes a variety of businesses that do not fall into the primary investment or telecommunications categories. A significant component of this segment is SBE Global, LP, which engages in the construction and operation of solar power plants in the United States. This aligns with the Group’s focus on securing renewable energy sources to power the energy-intensive AI infrastructure of the future.
This segment also encompasses the Fukuoka SoftBank HAWKS Corp., which owns and operates a professional baseball team, along with the management and maintenance of the baseball stadium and associated sports facilities. These operations contribute to the Group’s brand presence and community engagement in Japan.
4. SoftBank Vision Funds Segment
Revenue: 0 yen (Financial gains are recorded as Gain on Investments) Percentage of Total Revenue: 0% (Investment Business)
The SoftBank Vision Funds Segment includes the activities of SoftBank Vision Fund 1 (SVF1), SoftBank Vision Fund 2 (SVF2), and the SoftBank Latin America Funds. These funds are dedicated to investing in high-growth technology companies globally, with a specific focus on those leveraging AI to disrupt their respective industries.
While this segment does not generate “Net Sales” in the traditional sense, it is a primary driver of the Group’s asset value. The funds hold stakes in hundreds of private and public companies across sectors such as e-commerce, logistics, health tech, and transportation. The segment’s performance is measured by the fair value changes of these investments, realized gains from exits, and the overall growth of the portfolio.
5. Investment Business of Holding Companies Segment
Revenue: 0 yen (Financial gains are recorded as Gain on Investments) Percentage of Total Revenue: 0% (Investment Business)
This segment covers the investment activities conducted directly by SoftBank Group Corp. and its specific subsidiaries, acting as the strategic investment holding company. It manages the Group’s strategic shareholdings in major global technology companies, separate from the Vision Funds.
Key assets managed within this segment include the Group’s substantial stakes in Alibaba Group Holding Limited, T-Mobile US, Inc., and Deutsche Telekom AG. This segment also includes the operations of SB Northstar, an asset management subsidiary that invests surplus funds in highly liquid listed stocks and corporate bonds to manage liquidity and generate returns.
History and Evolution
Founding and Early Years (1980s)
The company’s journey began in 1981, when Masayoshi Son founded SOFTBANK Japan as a distributor of packaged software for personal computers. Establishing a vision of becoming a “software bank” for the information society, the company quickly capitalized on the nascent PC revolution. In 1982, the company launched a publishing business, further cementing its role in the IT ecosystem.
Expansion into Internet and Broadband (1990s – 2000s)
Recognizing the potential of the internet early on, the company went public in 1994 and established SoftBank Holdings Inc. in the U.S. for strategic investments. A pivotal moment occurred in 1996 with the launch of Yahoo! JAPAN, a joint venture that would become the dominant web portal in Japan. In 2000, the company made a strategic investment in Alibaba, a move that would yield historic returns.
The 2000s saw a shift toward infrastructure. In 2001, the company launched Yahoo! BB, bringing affordable broadband services to Japan. This was followed by the acquisition of JAPAN TELECOM in 2004, marking an entry into fixed-line telecommunications.
The Mobile Era (2006 – 2016)
In 2006, the Group executed a massive acquisition of Vodafone K.K., entering the mobile telecommunications market in Japan. This bold move, initially met with skepticism, was transformed into a success story with the introduction of the iPhone to the Japanese market.
Global expansion continued with the 2013 acquisition of U.S.-based carrier Sprint. This laid the groundwork for a future merger with T-Mobile, positioning the Group as a key player in the U.S. telecom market.
The AI and Strategic Investment Era (2016 – Present)
The acquisition of Arm in 2016 marked the beginning of a new chapter focused on the “singularity” and AI. In 2017, the SoftBank Vision Fund 1 was launched, mobilizing massive capital to invest in late-stage tech startups globally. This was followed by the launch of SoftBank Vision Fund 2 in 2019.
In 2023, Arm was listed on the Nasdaq Global Select Market, validating the strategic importance of the 2016 acquisition. By 2025, the Group fully oriented its strategy toward the ASI era. This included the announcement of the “Stargate Project” to build AI infrastructure and a landmark partnership with OpenAI, comprising substantial follow-on investments to accelerate the development of artificial super intelligence.
Products and Services
Mobile Communications Services
Segment: SoftBank Segment The Group provides comprehensive mobile communication services to individual and enterprise customers in Japan. This includes high-speed 5G data connectivity, voice services, and a variety of flexible price plans under the SoftBank, Y!mobile, and LINEMO brands.
Broadband and Fixed-Line Services
Segment: SoftBank Segment SoftBank Corp. offers high-speed internet connection services such as “SoftBank Hikari” to households. These services are often bundled with mobile contracts to provide value and customer retention through discounts.
Media and Commerce Services
Segment: SoftBank Segment Through LY Corporation, the Group offers a wide array of internet services.
- LINE: A messaging app that serves as a social infrastructure, offering communication, news, and entertainment.
- Yahoo! JAPAN: A comprehensive portal site offering search, news, e-commerce (Yahoo! Shopping), and auction services (YAHUOKU!).
- ZOZO: A specialized fashion e-commerce platform.
Payment and Financial Services
Segment: SoftBank Segment PayPay: A smartphone payment service that has become ubiquitous in Japan. It allows users to make cashless payments at physical and online stores. The ecosystem extends to financial services including banking (PayPay Bank), credit cards (PayPay Card), and securities.
Semiconductor Intellectual Property (IP)
Segment: Arm Segment Arm provides the IP for energy-efficient microprocessors.
- Cortex CPUs: The brain of the chip, handling general-purpose processing.
- Mali and Immortalis GPUs: Graphics processing units for high-performance visual computing.
- Ethos NPUs: Neural processing units designed specifically for AI and machine learning tasks.
- Arm Compute Subsystems (CSS): Pre-integrated and verified IP blocks that allow customers to build complex chips faster and with lower risk.
AI Infrastructure and Solutions
Segment: Corporate / Other
- Stargate Project: A large-scale initiative to build next-generation data centers in the U.S. equipped with massive computing power required for AI model training.
- Cristal Intelligence: An advanced enterprise AI solution developed in partnership with OpenAI, designed to optimize business operations and create new value for corporate clients.
Renewable Energy
Segment: Other Segment Through SBE Global and SB Energy, the Group develops and operates renewable energy generation facilities.
- Solar Power Generation: Utility-scale solar farms, particularly in the United States, designed to supply clean energy to data centers and grids.
Brand Portfolio
SoftBank
Segment: SoftBank Segment The flagship brand representing the Group’s telecommunications and comprehensive digital services. It is synonymous with innovation and the Information Revolution in Japan.
Arm
Segment: Arm Segment A global technology brand recognized as the standard for energy-efficient computing. The “Arm” brand represents the architecture that powers billions of devices, from sensors to supercomputers.
Y!mobile
Segment: SoftBank Segment A sub-brand of SoftBank Corp. offering affordable mobile services with a focus on value and simplicity, targeting a different demographic than the main SoftBank brand.
LINEMO
Segment: SoftBank Segment An online-only mobile service brand designed for digital natives, offering competitive pricing and digital-first customer support.
LINE
Segment: SoftBank Segment One of Japan’s most recognized social media brands, providing a messaging platform that is integral to daily communication for millions of users.
Yahoo! JAPAN
Segment: SoftBank Segment A legacy internet brand in Japan that maintains a massive user base for search, news, and e-commerce services.
PayPay
Segment: SoftBank Segment A rapidly growing financial brand that has become the generic term for QR code payments in Japan, symbolizing the shift to a cashless society.
Geographical Presence
Japan
Primary Operations: SoftBank Segment, Investment Business Revenue: 6,544.3 billion yen (SoftBank Segment revenue is predominantly domestic) Japan is the operational heart of the Group, housing the corporate headquarters in Tokyo. It is the primary market for the telecommunications, media, and payment businesses. The country hosts a dense network of mobile base stations, data centers, and retail stores supporting the SoftBank, Y!mobile, and Mobile operations.
United States
Primary Operations: Investment Business, Other Segment (SBE Global) The U.S. is a critical hub for the Group’s investment activities and future AI infrastructure plans.
- Investments: Significant holdings in T-Mobile US and OpenAI.
- Operations: SBE Global operates nine solar farms generating 2,130 MW and is constructing additional facilities.
- Strategic Projects: The Stargate Project for AI data centers is focused on U.S. locations.
United Kingdom
Primary Operations: Arm Segment Revenue: 464.0 billion yen (Global revenue attributed to UK-based Arm) Cambridge, UK, serves as the headquarters for Arm Holdings plc. This location is the center for R&D and strategic planning for the Group’s semiconductor business.
China
Primary Operations: Investment Business, Arm China China remains a significant market for the Group’s investments, most notably its long-standing stake in Alibaba. Additionally, Arm accesses the Chinese market through Arm China, a joint venture that licenses Arm technology to local semiconductor companies.
Global (Rest of World)
Primary Operations: SoftBank Vision Funds The Vision Funds maintain a global footprint with investments dispersed across Europe, India, Southeast Asia, and Latin America.
- India: A key market for SVF with portfolio companies like Swiggy, Ola Electric, and FirstCry.
- Latin America: Dedicated funds (LatAm Funds) invest in the region’s growing tech ecosystem.
Financial Performance Analysis
Consolidated Performance
For the fiscal year ending March 31, 2025, SoftBank Group Corp. reported a robust financial recovery and growth trajectory.
- Net Sales: The Group achieved 7,243.8 billion yen, marking an increase of 7.2% year-on-year.
- Net Income: Net income attributable to owners of the parent stood at 1,153.3 billion yen, a significant improvement of 1,381.0 billion yen compared to the previous fiscal year’s loss.
- Total Comprehensive Income: The Group recorded 1,082.3 billion yen in total comprehensive income.
Multi-Year Trend Analysis
- Investment Gains: The Group turned a corner in investment performance, recording a total investment gain of 3,701.1 billion yen in fiscal 2024, compared to a loss of 559.4 billion yen in fiscal 2023.
- NAV Growth: Net Asset Value grew to 25.7 trillion yen, reflecting a steady recovery driven by the appreciation of asset holdings like Arm and the recovery in Vision Fund valuations.
- Profitability: The return to profitability for the first time in four years underscores the success of the Group’s defensive financial management strategies implemented during volatile market periods.
Profit and Loss Analysis
Revenue Breakdown
- Total Net Sales: 7,243,752 million yen.
- Gross Profit: 3,754,203 million yen, representing a gross margin of approximately 51.8%.
Operating Performance
- Gain on Investments:3,701,107 million yen. This massive gain was the primary driver of profitability, overshadowing operating expenses.
- Holding Companies Investment Gain: 3,413,821 million yen (driven by Alibaba and T-Mobile).
- SVF Investment Gain: 387,584 million yen.
- Selling, General and Administrative Expenses: 3,024,409 million yen, an increase of 1.4% year-on-year. This reflects controlled spending despite business expansion.
- Finance Cost: 581,559 million yen, an increase of 4.6%, largely due to higher interest expenses on bonds and loans.
- Derivative Loss: 2,034,029 million yen (excluding investment gains), primarily from prepaid forward contracts associated with Alibaba shares.
Net Profit Ratios
- Income Before Income Tax: 1,704,721 million yen.
- Net Income Margin: 15.9% (Net Income attributable to owners / Net Sales).
- Basic Earnings Per Share (EPS): 780.82 yen, a sharp reversal from the negative EPS of 170.99 yen in the previous year.
Balance Sheet Analysis
Assets
- Total Assets: 45,013,756 million yen, a decrease of 3.7% year-on-year.
- Cash and Cash Equivalents: 3,713,028 million yen, ensuring ample liquidity for strategic maneuvers.
- Investments from SVF (FVTPL): 11,410,922 million yen, reflecting the fair value of the Vision Fund portfolios.
- Investment Securities: 8,040,068 million yen, comprising strategic stakes in T-Mobile, Deutsche Telekom, and Alibaba.
- Property, Plant and Equipment: 2,830,185 million yen, an increase due to the consolidation of SBE Global and data center acquisitions.
Liabilities
- Total Liabilities: 31,060,730 million yen, a decrease of 7.2% year-on-year.
- Interest-bearing Debt:18,913,350 million yen (Total of current and non-current).
- SBG Standalone Debt: 8,593,337 million yen.
- Non-recourse Debt: 3,461,666 million yen held by wholly owned subsidiaries.
- Third-party Interests in SVF: 3,652,797 million yen, representing the equity claims of external investors in the Vision Funds.
Equity and Liquidity
- Total Equity: 13,953,026 million yen.
- Equity Ratio: 25.7%, improving from 23.9% in the previous year.
- LTV Ratio: 18.0%. This is well below the internal safety threshold of 25% in normal times, indicating a robust financial position capable of withstanding market volatility.
Cash Flow Analysis
Operating Activities
Net Cash Provided: 203,580 million yen Despite substantial investment activities, the Group maintained positive operating cash flow. Income taxes paid amounted to 380.0 billion yen, partially offset by refunds of 164.8 billion yen.
Investing Activities
Net Cash Used: 1,631,540 million yen
- Acquisition of Investments: 1,625.2 billion yen outflow. This includes strategic investments in AI companies like Wayve and listed stocks.
- SVF Investments: 578.9 billion yen outflow for new portfolio additions.
- Sales of Investments: 1,180.7 billion yen inflow, primarily from the sale of T-Mobile shares and other liquid assets.
- Capital Expenditure: 854.2 billion yen outflow for property, plant, and equipment, mainly for telecommunications and data center infrastructure.
Financing Activities
Net Cash Used: 1,116,384 million yen
- Proceeds from Debt: 5,313.7 billion yen, raised through bonds, term loans, and hybrid loans.
- Repayment of Debt: 3,809.1 billion yen, including the redemption of senior notes and settlement of prepaid forward contracts.
- Share Repurchases: 237.1 billion yen outflow to return value to shareholders.
- Distributions to SVF Investors: 1,485.8 billion yen outflow to third-party limited partners.
Board of Directors and Leadership Team
Board Directors
- Masayoshi Son: Representative Director, Corporate Officer, Chairman & CEO. The founder and visionary leader driving the Group’s strategy.
- Yoshimitsu Goto: Board Director, Corporate Officer, Senior Vice President, CFO, CISO & GCO. Responsible for finance, administration, and legal units.
- Ken Miyauchi: Board Director. Brings extensive experience in the domestic telecommunications business.
- Rene Haas: Board Director. CEO of Arm Holdings plc, representing the core semiconductor business on the board.
- Masami Iijima: External Board Director, Independent Officer. Offers expertise in corporate management and governance.
- Yutaka Matsuo: External Board Director, Independent Officer. A leading expert in AI research, advising on technology strategy.
- Keiko Erikawa: External Board Director, Independent Officer. Provides perspectives from the digital entertainment industry.
- Kenneth A. Siegel: External Board Director. brings legal and M&A expertise.
- David Chao: External Board Director, Independent Officer. Offers insights into global investment and technology trends.
Audit & Supervisory Board Members
- Maurice Atsushi Toyama: Full-time External Member. Certified Public Accountant with international business expertise.
- Yuji Nakata: Full-time External Member. Expert in risk management from a financial institution background.
- Kuniko Nishibashi: External Member. Certified Public Accountant providing independent audit perspectives.
- Yuko Kanamaru: External Member. Lawyer offering legal oversight.
Subsidiaries, Associates, Joint Ventures
Key Subsidiaries (by Strategic Importance and Revenue)
- SoftBank Corp.
- Ownership: 40.3%
- Role: Core operating entity for domestic telecom and IT services.
- Revenue Contribution: 90.3% of consolidated net sales.
- Arm Holdings plc
- Ownership: 87.3%
- Role: Global leader in semiconductor IP.
- Revenue Contribution: 6.4% of consolidated net sales.
- LY Corporation
- Ownership: 62.5% (held through subsidiary)
- Role: Operator of LINE and Yahoo! JAPAN.
- PayPay Corporation
- Ownership: 100.0% (held through subsidiary)
- Role: Leading smartphone payment service provider.
- SB Northstar LP
- Ownership: 100.0% (67% economic interest)
- Role: Asset management subsidiary for listed stocks and bonds.
- SBE Global, LP
- Ownership: 100.0%
- Role: Renewable energy generation in the U.S.
- SB Investment Advisers (UK) Limited
- Ownership: 100.0%
- Role: Manager of SoftBank Vision Fund 1.
- SB Global Advisers Limited
- Ownership: 100.0%
- Role: Manager of SoftBank Vision Fund 2 and LatAm Funds.
Significant Associates
- Alibaba Group Holding Limited: E-commerce giant.
- T-Mobile US, Inc.: U.S. telecommunications carrier.
- Deutsche Telekom AG: European telecommunications provider.
Physical Properties
Corporate Headquarters
- Location: Tokyo, Japan (1-7-1, Kaigan, Minato-ku).
- Function: Central command for global strategy, finance, and administration.
Operational Hubs
- Arm Headquarters: Cambridge, United Kingdom. The central hub for semiconductor R&D and IP design.
- SoftBank Corp. Operations: Extensive network of base stations, data centers, and retail outlets throughout Japan.
Energy Facilities
- SBE Global Solar Farms: Nine operational solar power plants in the United States generating a collective 2,130 MW.
- Construction Projects: Four additional solar farms under construction in the U.S., projected to add 1,180 MW of solar capacity and 1,361 MW of battery storage.
Data Centers
- Hokkaido Tomakomai AI Data Center: A planned large-scale facility in Japan scheduled to open in fiscal 2026. It is designed to operate on 100% renewable energy and serve as a core infrastructure for the Group’s AI initiatives.
Segment-wise Performance
Investment Business of Holding Companies
- Performance: Recorded a massive investment gain of 3,413.8 billion yen.
- Key Drivers: Gains of 1,875.9 billion yen on Alibaba shares and 1,352.2 billion yen on T-Mobile shares.
- Strategic Moves: Acquired Graphcore and Ampere to bolster the AI semiconductor stack.
SoftBank Vision Funds
- Performance: Achieved an investment gain of 387.6 billion yen, recovering from a loss in the previous year.
- SVF1: Recorded a gain of 940.5 billion yen, driven by valuation increases in ByteDance and Coupang.
- SVF2: Recorded a loss of 526.5 billion yen, impacted by share price declines in public portfolio companies like AutoStore and Symbotic.
- Activity: Continued disciplined investing with 3.79 billion yen in new investments and 3.00 billion yen in divestments.
SoftBank Segment
- Performance: Net sales grew to 6,544.3 billion yen. Segment income rose 8.5% to 906.3 billion yen.
- Key Drivers: Increased mobile subscriber numbers, growth in cloud services for enterprises, and the achievement of profitability by the PayPay group.
Arm Segment
- Performance: Net sales surged 32.0% to 464.0 billion yen. Segment income improved to 47.7 billion yen.
- Key Drivers: Record royalty revenue driven by the adoption of Armv9 architecture and market share gains in cloud and automotive sectors. License revenue also hit record highs due to long-term agreements for AI chip development.
Founders
Masayoshi Son Masayoshi Son founded the company in 1981 at the age of 24. A visionary entrepreneur, his leadership has defined the Group’s aggressive expansion and strategic pivots over four decades.
- Inspiration: At 17, Son encountered a photo of a microcomputer chip, which he describes as seeing the “future of humanity.” This moment sparked his lifelong commitment to the Information Revolution.
- Philosophy: He equates happiness with inspiration and aims to channel the power of technology to bring joy to people.
- Current Role: Representative Director, Corporate Officer, Chairman & CEO.
- Ambition: To make SoftBank the world’s No. 1 ASI platform provider.
- Ownership: Holds 29.68% of the company’s shares (426,661 thousand shares).
Shareholding Pattern
As of March 31, 2025:
- Masayoshi Son: 29.68% (Largest shareholder).
- The Master Trust Bank of Japan, Ltd. (Trust Account): 17.15%.
- Custody Bank of Japan, Ltd. (Trust Account): 7.18%.
- JP MORGAN CHASE BANK 380763: 2.02%.
- HSBC HONG KONG-TREASURY SERVICES: 1.80%.
- Treasury Stock: 2.2% (32,398,924 shares).
The shareholding structure reflects strong founder control combined with significant institutional investment, ensuring alignment with long-term strategic goals.
Investments and Capital Expenditure Plans
Strategic Investments
The Group is aggressively ramping up investments to realize its ASI vision.
- OpenAI: Committed up to 40.0 billion USD in follow-on investments.
- Ampere: Decided to acquire 100% equity for 6.5 billion USD to secure high-performance AI semiconductor capabilities.
- Graphcore: Acquired to integrate specialized AI chip technology.
- Stargate Project: A multi-billion dollar initiative to build AI infrastructure in the U.S.
Capital Expenditure
- SoftBank Corp.: Invested 854.2 billion yen in fiscal 2024. This capital is allocated to expanding 5G network coverage, constructing the Hokkaido Tomakomai AI Data Center, and upgrading AI computing infrastructure.
- Arm: Significant R&D spending to develop next-generation CPU and GPU architectures like Armv9 and Compute Subsystems (CSS).
R&D Strategy
- Focus: The Group prioritizes R&D in generative AI, autonomous driving (Wayve), and energy-efficient computing (Arm).
- Execution: R&D is conducted decentrally by operating companies like Arm and SoftBank Corp., ensuring agility and specialized focus.
Future Strategy
The ASI Era Strategy
The Group has declared its ambition to become the No. 1 ASI Platform Provider. This strategy is built on the belief that Artificial Super Intelligence will redefine every industry within the next decade.
Three-Layer Strategic Framework
- AI Infrastructure: Building the physical foundation.
- Data Centers: Expanding capacity through the Stargate Project and domestic projects.
- Chips: Leveraging Arm, Ampere, and Graphcore to dominate the AI semiconductor market.
- Energy: Securing renewable power via SBE Global to run energy-intensive AI operations.
- AI Models: Investing in the “brains” of ASI.
- OpenAI Partnership: Deepening the capital and strategic alliance with the leader in generative AI models.
- AI Services/Applications: delivering value to users.
- Cristal Intelligence: Deploying enterprise AI agents to optimize business processes.
- Consumer AI: Utilizing the vast user base of LINE and Yahoo! JAPAN to roll out AI-driven consumer services.
Financial Policy
- LTV Management: Maintain Loan to Value ratio below 25% in normal times (upper threshold of 35% in emergencies) to ensure financial stability.
- Cash Reserves: Maintain sufficient cash to cover at least two years of bond redemptions.
Key Strengths
- Cluster of No. 1 Strategy: A unique ecosystem of market-leading companies that fosters resilience and synergistic growth.
- Arm’s Market Dominance: Ownership of the world’s most pervasive compute architecture, essential for the AI and mobile ecosystems.
- Visionary Leadership: Masayoshi Son’s proven ability to identify paradigm shifts (PC, Internet, Mobile, AI) ahead of the curve.
- Global Investment Network: Unmatched access to high-growth startups through the Vision Funds, providing a pipeline of future tech giants.
- Robust Financial Foundation: A strong NAV of 25.7 trillion yen and a conservative LTV of 18.0% provide the firepower for bold strategic moves.
- Domestic Cash Cow: The SoftBank Segment provides a stable stream of operating cash flow to fund global growth initiatives.
Key Challenges and Risks
- Geopolitical Risks: Operations in the U.S. and China expose the Group to trade tensions, export controls, and regulatory changes that could impact portfolio companies like Arm and Alibaba.
- Market Volatility: As an investment holding company, the Group’s financial results and NAV are highly sensitive to fluctuations in stock markets and the valuations of tech companies.
- Tech Obsolescence: The rapid pace of AI evolution means that today’s cutting-edge technologies could quickly become outdated. Failure to back the winning technology could lead to significant losses.
- Debt Management: While LTV is managed conservatively, the absolute level of interest-bearing debt is high. Rising interest rates or a deterioration in credit ratings could increase funding costs.
- Dependence on Key Personnel: The Group’s strategy relies heavily on the vision and leadership of Masayoshi Son. Unforeseen issues affecting him could impact decision-making.
- AI Regulation: The evolving legal landscape regarding AI ethics, copyright, and safety could impose new constraints on the Group’s AI-centric business model.
Conclusion and Strategic Outlook
SoftBank Group Corp. has successfully navigated its “defensive” phase and has shifted decisively to an “offensive” strategy centered on Artificial Super Intelligence (ASI). By securing critical assets across the entire AI value chain—from green energy and data centers to semiconductor IP and foundational models—the Group has positioned itself as an indispensable player in the next technological epoch.
The successful listing of Arm and the strategic deepening of ties with OpenAI serve as the twin engines of this new growth phase. With a recovered NAV, a disciplined financial policy, and a clear vision for the next 300 years, SoftBank is poised to lead the Information Revolution into the era of superintelligence. The Group’s ability to execute on its massive infrastructure projects and integrate its diverse portfolio companies will be the defining factor in achieving its ambition of bringing “Happiness for everyone.”
Official Site: https://group.softbank/
FAQ Section:
- What is SoftBank Group’s core philosophy? SoftBank Group’s unchanging corporate philosophy is “Information Revolution — Happiness for everyone,” aiming to use technology to create a joyful society.
- What is the “Cluster of No. 1 Strategy”? It is SoftBank’s organizational strategy to build a synergized ecosystem of autonomous group companies, each possessing industry-leading technologies and business models.
- What is SoftBank’s main strategic focus for 2025 and beyond? The Group has shifted its strategy to become the world’s leader in the Artificial Super Intelligence (ASI) era, focusing on AI chips, data centers, and robotics.
- How much revenue did SoftBank Group generate in Fiscal 2024? SoftBank Group reported Net Sales of 7,243.8 billion yen for the fiscal year ended March 31, 2025.
- What is SoftBank’s ownership stake in Arm? As of March 31, 2025, SoftBank Group holds an 87.3% ownership stake in Arm Holdings plc.
- What is the Stargate Project? The Stargate Project is a large-scale initiative announced by SoftBank to build next-generation AI data center infrastructure in the U.S. for OpenAI.
- What is SoftBank’s Net Asset Value (NAV)? As of March 31, 2025, SoftBank Group’s Net Asset Value (NAV) stands at 25.7 trillion yen.
- Who is the CEO of SoftBank Group? Masayoshi Son serves as the Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group Corp.
- What is SoftBank’s financial policy regarding debt? SoftBank manages its finances to keep the Loan to Value (LTV) ratio below 25% in normal times and maintains cash reserves to cover at least two years of bond redemptions.
- Does SoftBank invest in renewable energy? Yes, through its subsidiary SBE Global, SoftBank operates solar power plants in the U.S. to secure clean energy for its AI infrastructure.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
