SoftBank Group (SFTBY) is a Japan-based technology investor looking forward to investing in artificial intelligence (AI) companies given the growing global interest in the artificial intelligence (AI) space. The company has been operating in defensive mode over the past year as it suffered losses on several startup investments due to a slowdown in the tech sector.
In addition, Softbank disposed of its investment in the Alibaba Group (baba) most recently reported quarter. It should be noted that SoftBank invested 7.4 billion yen in Alibaba about 22 years ago, resulting in a huge profit of 4.6 trillion yen.
The sale transaction is part of SoftBank’s strategy to reduce its exposure to China. From about 50% three years ago, the company has steadily reduced its share of its investment in China to 15% today. This has allowed the company to diversify geographically through investments in the US and Europe.
Yesterday, SoftBank reported that its net loss for the fiscal year ended March 31 shrank significantly year-on-year to ¥970 billion. This performance was largely undermined by a ¥5.3 trillion loss from investments in the SoftBank Vision Fund division.
Additionally, the initial public offering of SoftBank-owned semiconductor company Arm is expected to strengthen the company’s balance sheet position and make cash available for new AI investments. SFTBY shares are down 10.8% by 2023.
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