SoftBank's Vision Fund just posted a $2.4 billion quarterly gain, riding a surge in OpenAI's valuation that helped mask weakness across its broader portfolio. The win marks a dramatic turnaround for the fund that's struggled with declining valuations in its tech holdings, and signals that AI investments are becoming the new anchor for venture portfolios navigating a challenging market.
SoftBank Group just delivered a rare piece of good news for its beleaguered Vision Fund. The investment vehicle posted a $2.4 billion gain in its latest quarter, driven almost entirely by a jump in OpenAI's valuation that papered over continued struggles in other parts of the portfolio.
The results highlight how dramatically the AI boom is reshaping venture economics. While SoftBank's broader portfolio grapples with down rounds and declining valuations, its OpenAI stake has become an outsized winner that's single-handedly turning red ink to black.
According to CNBC reporting, the Vision Fund logged the substantial quarterly gain as OpenAI's private market valuation continued climbing. The timing couldn't be better for SoftBank founder Masayoshi Son, who's faced mounting criticism over the fund's performance since its 2017 launch.
But the headline number masks a more complicated story. The $2.4 billion gain came as OpenAI's valuation increase "helped offset losses in some of its other bets," revealing that without the AI champion, the fund would still be posting declines. That dynamic underscores how concentrated SoftBank's recent success has become, with one or two mega-winners carrying an entire portfolio of underperformers.
The OpenAI investment has proven to be one of Son's most prescient bets. SoftBank participated in OpenAI's funding rounds as the company transitioned from research lab to commercial powerhouse, and those early stakes have multiplied in value as ChatGPT and enterprise AI products drove explosive revenue growth. Industry observers estimate OpenAI's current valuation has surged past $150 billion in secondary markets, though the company hasn't confirmed recent pricing.
For context, the Vision Fund has historically struggled with valuation write-downs across its portfolio. High-profile investments in companies like WeWork, Greensill Capital, and various logistics startups have cratered, forcing SoftBank to book billions in losses. The fund posted cumulative losses exceeding $30 billion between 2021 and 2023 as tech valuations collapsed.
