SoftBank Group (OTC:SFTBY) held its fourth-quarter earnings conference call on Wednesday. Below is the complete transcript from the call.

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Access the full call at https://group.softbank/en/event/earnings_2025q4#1

Summary

SoftBank Group reported a record net income of 5 trillion yen, marking the highest EBITDA profit in Japanese corporate history.

The company has made significant investments in AI infrastructure, including AI models and AI chips, with a major focus on strategic collaborations with OpenAI and ARM.

SoftBank Group's Vision Fund reported a cumulative investment gain of 45.7 billion, driven by significant recovery and growth in portfolio companies, particularly OpenAI.

The company's investment strategy includes a commitment of 38.5 billion in areas like AI and robotics, with a strong focus on maintaining a healthy financial position.

Management remains optimistic about the future, focusing on becoming a leader in AI and maintaining a disciplined financial policy to support strategic initiatives.

Full Transcript

OPERATOR

Thank you very much for waiting everyone. Now we would like to start the Softbank Group Corp. Earnings result announcement for fiscal year ended March 31, 2026. First of all I would like to introduce today's participant. From left we have Yoshimi Tsugoto, Board Director and CFO Kazuko Kimiwada, corporate officer senior vice president and CEO. Navneet Govil, executive partner and cfo SB investment advisors and SB global advisors. Jason Child, executive vice president and cfo. Today's announcement is live broadcast over Internet. Now I'd like to invite Yoshimi Tsugoto to present you the earnings results and business overview. Thank you very much for joining our earnings announcement today during your busy schedule. So I would like to update you with our one full year results when we announced the third quarter announcement. I remain seated and make a presentation. I still have some in the recovery process for my knee so let me stay seated for the presentation. Thank you very much for your understanding for this year. Masa and together with us actually made every effort and I believe we were able to make quite a good results and outcome market and environment which you all know that AI became even bigger buzzword making our influence to the variety of places and segments and industry, this influence becoming bigger and stronger and that is actually creating the good expectation as well as risk consideration as well. So I understand there are many discussions taking place here and there. From the Softbank's group point of view. We made quite a good capital intensive investments in the big AI infrastructure and now we start seeing the physical AI actually utilized in practice and at the same time AI agent, real full fledged execution is now discussed at the same time. Also sometimes this AI service can be replacing existing or traditional business in some extent and at the same time it may create the materializing the risk which has not been seen in the past. In our vision based on all those circumstances we aim to become the number one ASI platform provider and now that we are continuing our journey and this was a kind of a starting year for this fiscal year. We have shared this slide in many occasions by me, myself and Masa himself and there are four major pillars when it comes to ASI AI Model, AI Chip, physical AI and AI Infrastructure. And here I would like to share that how we've been developing in these areas especially I would like to highlight those two which is AI model and AI chip. For AI model we have invested in OpenAI and at the same time they've been making a good growth as we expect and we've been having a Good discussion. When it comes to strategic collaboration that is another good benefit in terms of increasing our knowledge in AI and for AI chip of course this is the main focus by arm. And recently we saw market cap very near to the record level $221 billion. For AI model. Let me deep dive here. So in October this year, once we finish all those investment that we committed, that gonna lead us to 64 point which will be nearly 10 trillion yen under the current forex. And at the same time we've been expanding strategic collaboration with OpenAI for AI chip which led by ARM. Of course Ampere is going to be in this section. And the biggest move that ARM made was to announce first in house CPU chip. Recently also we have completed the acquisition of Ampere which I would like to touch is on data pages. And also we have Jason CFO ARM. So if you have any question, please do not hesitate to ask any questions to him. Physical AI this is actually a long history in US Pepper. You may recall the humanoid robots that we started with. So Physical AI section. Has several good portfolio companies of which about 20 of those portfolios has been covered together under Robo Holdings. And in addition as we announced, We have announced the acquisition the major robotics company ABB Robotics business. So in coming few months we expect that we will be able to close this acquisition transaction. And that can be another good strength for our physical AI segment. And that can be a great value added to our group. Last but not least, AI infrastructure which is led by SB Energy in United States. This entity is leading a main role. And also we announced the major Japan US public private project which is the Ports Technology Campus which is a symbolic project for this AI infrastructure segment. Not only this project, but we also looking at the development of further data center sites led by mainly by SB Energy. And we are. We are looking forward to have further development and the progress of such projects. And with these efforts, how does has that been contributed to our numbers here? Profit actually highest ever 5 trillion yen level in net income. And this net income as far as we understand, we believe this is highest EBA profit in Japanese corporate history. From the net income highest eba back in 2020 we achieved 4.9 trillion yen. That was the highest in this time we were able to exceed that number. In addition, when you see to enterprise value, actually this is even more important indicator than P L which is net asset. So from the our assets held this net debt. And here we looking at 40.1 trillion yen for the net asset value for this quarter latest number Pro forma basis actually as of this morning on an estimated basis 47.7 trillion yen. That's a net number. So this is this after this net interest bearing debt. Consolidated results, Net sales gain, loss on investments, income before income tax and net income in our segments we were able to made a significant growth across all profit measures As a key performance indicator, net asset value as of the end of March this year 40.1 trillion yen and the latest number pro forma basis above 48 trillion and the loan-to-value which is net debt divided by Equity value of holdings 17.0% as of the end of March. Again when you look at the previous year and actually making an even improvement even after the bigger investments that we have made and the pro forma base latest number I would say 1515 ish percent but the balance sheet moves around so this is just a four year reference. So as of March end I can say we've been improving actually since then in terms of loan-to-value and cash position. As on financial policy we always like to maintain our cash position to cover two year equivalent of the bond redemption and actually this covers even more than that and as a result it comes to 3.5 trillion yen for the cash position as of the end of March. Now. Let me touch upon our major contributors to the financial result. First ARM again they announced first in house chip There were some rumor in the past but officially announced in March this first in house chip and also they had the record high market cap. Since listing their market value was 52 billion. It's been growing for over four times over the last less than three years. In terms of revenue they have been increasing revenue year on year and FY2025 in Japan calendar they recorded 4.9 billion or up 23% year on year. So they have been growing very steadily. As you can see on the slide left hand side in a cloud market they have gained more shares AWS, Microsoft, Google they used ARM's CPU and on the right hand side in the area of Compute Subsystem (CSS) or COMPUTE subsystem which has a very high margin since they have capability to deliver combined technology which allows customers to develop on their own very easily. So again in the Compute Subsystem (CSS) area they have been growing and they have acquired up to 23 contracts including Microsoft and Samsung. In terms of EPS again they had the record high EPS. They have spent a lot in R&D for their future growth. However the revenue offset such R&D expenses and they are able to hit the record high EPS. And let me remind you why ARM is strong as you can see ARM. Provides IP license to semiconductor makers. So they have a business model to deliver source of the semiconductor industry. Without ARM the industry wouldn't stand and they have a compute platform most popular in the world. And total chips ever shipped is over 350 billion. And global population using products or services percentage wise 70% of the people in the world use ARM in any way. And there is a huge developer community based upon ARM's technology to develop varieties of semiconductors. In fact 22 million developers are making use of ARM technology. So ARM is leading the whole industry. Like I said, they announced the first in house CPU chip. So they provide licenses and royalty to customers traditionally. So on top of that with the in house CPU chip they are going to deliver more. So let me show you a short video clip Rene talking about the background why they decided to build their CPU chip in the last number of months has been this explosion of agents. As we move to agenta query the number of tokens per human go up by 15x if not greater the data center is choking these accelerators which are very expensive that generate the tokens now need to send those tokens back through the cloud. So what you see is a huge bottleneck now. So what does that mean? You need more and more CPUs. That's why they decided to offer most efficient Agentix CPU in the world or ARM AGI cpu. They developed ARM AGICPU with Meta and there are launch partners supporting them including OpenAI. Those major brands are supporting them and they have been communicating each other based upon the new business model how ARM's financial performance is going to look like. Announcement was made in March and like I said their revenue in FY25 was 4.9 billion. But in 2030 or in the five years they are expecting to hit five times bigger revenue and also EPS. They expect five times bigger EPS over the next five years. So ARM is ready to hit those numbers and from profitability perspective they have already have an IP business which has high margin and and with this chip manufacturing ARM I think it's going to draw a new growth story going forward. Now let us go into the OpenAI slides. There are three highlights for OpenAI I believe. First valuation compared to a year before which was 260 billion in March 2025 and that became $730 billion and investment amount in fiscal 2025. As of the end of March, $32.4 billion has been made in OpenAI and from April to October over three times that in total we will be making follow on investments of 30 billion. And that has already been agreed. The first tranche in April, 10 billion has been already paid. And this is the OpenAI by the Asian movement at initial investment in OpenAI back in September 2024. Back then OpenAI valuation was $150 billion. Last year we had additional investments of 30 billion. At that time when we made a commitment of 30 billion, additional investment valuation was $260 billion in March 2025. And after then they had financial round, another financial round. And this February in 2026 we made a follow on investment commitment and that moment valuation was $730 billion. So since the initial investment it took about two years and a half and actually made about five times of devaluation. I assume you are also a good user of ChatGPT and the service that provided by OpenAI that you've been experiencing. And I think that you can understand why they are making such a great growth in variation. And also this is the investment amount in OpenAI 2.2 billion in fiscal 2024 last year, $32.4 billion and additional follow on additional 30 billion. So total investment in October this year reaching to $64.6 billion. In that moment, ownership will be somewhere around 13% once again out of 30 billion. 10 billion has already been funded in April this year as a first tranche. And this is a growth of the ChatGPT service. And then these are the data that are shared by and disclosed by OpenAI and weekly active user here 900 million plus number of users are actually counted for February 2026, which is accounted for 15% of global Internet users and also paid subscribers. It's over 50 million subscribers. Now. ChatGPT initially focused on the retail or the consumer market. So you been seeing these numbers, but actually Open Air has been also putting an effort in enterprise business and they are accelerating this business as well. Right now it's about 40% enterprise share of the total revenue and that is expected to be 50% by the end of 2026. So as a result, consumer business and enterprise business will be about the same size. That's how we see around the end of this year. And also paying E Business users as of this April that they have already reached and exceed 9 million users. And the coding agent, as you can tell that the coding is a very complicated task and this agent executes complex coding tasks on behalf of you or for you. And that actually creates a great productivity. And how much people actually using this is only in four months. And this number of users are in 10 times. So this growth is tremendous. And that's something that is happening in coding area. So compute is the foundation of AI evolution. You need more compute. And with having more compute you'll be able to have more intelligent models. And once you have more intelligent models, that leads you to more intelligent products and that actually faster adoption and more revenue and more cash flow. So that's how we've been seeing wider range of the use case in AI. So access to compute is a strategic advantage. And also compute is provided with multiple partners. But that doesn't come to you overnight. You do need a good preparation and you do need strong partners. Otherwise you can already have an access to compute and OpenAI having chip vendors like Nvidia, Oracle for data centers or cloud providers such as Microsoft. So having a great relationship and partnership with those companies. As a result they'll be able to create such infrastructure and having an access to compute. And they are in the process of such a development of further advantage for the company. And now on to Vision Fund. Actually it is showing quite a good number this time that we are happy to share with you. 45.7 billion as a cumulative investment gain compared to the year over year, that's additional incremental 46.2 billion. And accumulative investment gain is also becoming a positive number. And this is the actual cumulative investment gain and or loss from the Vision Fund segment point of view. And actually made a significant improvement. 24.2 billion incrementals for Bizon Fund 1 and 21.8 billion for Bizon Fund 2. So since 2022, 2021 that they made a significant increase. And after then that actually they made a great recovery compared to at the time of the 2020. And the Bijoumpond one actually is making a steady growth of course in portfolio. Some of them are doing good because of several factors. Especially for those public securities. There are some companies that are having some slowdown of the share price increase. But each one of them has their own reason. And as far as we understand the reason I believe that we can understand. And at the Same Time Vision Fund 1 will be able to see and manage leading to the best monetizations for the fund as Bizon Fund already finished its investment period. And for Bijouf 2 on your right hand side they say Open Air contribution is large. These numbers as OpenAI through the private company. But at the same time. We will be expecting some exit stories going forward for those portfolio companies including IPO or divestments but the fund too still have a good investment period. So we would like to look forward to see a good growth of those portfolio companies including OpenAI for the future. And here's a cumulative investment return you see respectively in Bijon Fund 1 and Vision Fund 2 actually making a good growth for Bijouf 1 unl left hand side it is making a good investment return 72 billion has been already exited and on your right hand side Vision Fund 2 cumulative investment return 119 billion. So making a good recovery here as well. In the public listings and pipelines for Bijoump Fund is shown on this slide. Fiscal 20257 listings has happened which include Paypay which was quite the large size of the IPO and we are very happy to have them in this list and cumulative since inception 62 listing has happened. I believe this is quite a good numbers from the IPO results point of view. On your right hand side is a late stage portfolio fair value. Total fair value is also growing 118 billion compared to the last year March 81 billion incrementals. This again having a big contribution from OpenAI but also there are other contribution from ByteDance fanatics. There are also quite good companies that we are looking at Pepe as I mentioned earlier March 12 that they went to public in NASDAQ market market cap $12 billion. So this was the largest Japanese corporations listed in United States. I'm also a member of the board of Pepe. And they actually started from the scratch and came to this way to the IPO and also making a big IPO which is quite impressive journey that they have gone through. Of course Masa has quite a passion in it and I believe his founder entrepreneurship actually led to these results and as a group we are very motivated to see that these companies of our group is making such a great growth. And PayPal operation is actually doing pretty well as well. Number of registered users exceeded 73 million so it's used by more than one in two people in Japan and more than two in three smartphone users in Japan. GMB also making a very steady growth here which exceeded 19 trillion yen in the payment or cashless payment market is about 160 trillion yen size. So 19 trillion yen. GMV means actually accounts for 12% so I believe that it's making a quite a good share that the PEPE has right now and share price. Oh it's too early to tell because they just went public so we do need to follow several years over. But since the IPO they are making a good Progress so far, which is also another happy news for me. Now let me talk about AI infrastructure. This is the highlight in AI infrastructure. Back in March we announced World's largest integrated power and data center campus in Ports Technology Campus Ohio. Masa is in the middle of the picture together with Commerce Secretary and Energy Secretary of the United States. This is a large scale public private AI infrastructure project involving the American Department of Energy, Department of Commerce, SP Energy and AEP Ohio which is power company like Tokyo Power Electrics or Chubu Power Electrics in Japan. So again, this is a public private project in terms of power capacity of 10 gigawatt, Engine is gas. The mega data center which is required by AI needs such huge power. 10 gigawatt is equivalent or exceeding metropolitan Tokyo's average power demand. Tremendous capacity and from data center perspective, the capacity of 10 gigawatt is to give an idea or to put into perspective, this level exceeds the combined installed data power capacity of the UK, Japan and South Korea. So 10 giga in power and 10 gigawatt per data center. As you can see, this is a huge project, first of its kind in history. At the groundbreaking ceremony, Masa said that this project would stimulate the whole industry and accelerate innovation across every aspect of our lives. This will become the center of our super intelligence. This vision is shared with American government and obviously Japan is involved in this project. And I think everyone is on the same page which is to strive for becoming the center of artificial superintelligence in the future. We would like to make this project success and we want to grow together with this kind of huge project not only for our group but also we hope that growth of AI will make people in the world happy. We have an SB Energy in our group and let me remind you why this company is strong. SB Energy is a US entity and. They have a capacity or capability to develop data center and power combined. They have a great track record. For example, in terms of data center, this is the AI Data center in Millam county in Texas. The construction is underway and capacity is 1.5 gigawatt and the tenant is an OpenAI which signed an agreement for over 15 years. And also SoftBank Energy or SBA Energy started from the power business. In terms of battery storage and solar energy and combination of battery storage and solar energy. They have great past record like in Nevada, in us. Not only in the US but also in Japan. Well, SoftBank KK had an announcement of their financial results earlier this week. So again they have started working on data centers in Japan and those include Tomakoma in Hokkaido and Sakai in Osaka. SoftBank led by Mr. Miyakawa is working and building those huge data centers in Japan. Now let me move on to physical AI. What is physical AI? Robots and driverless cars. So physical AI allows those autonomous type of robots to recognize understand what's happening around the world to execute complex tasks, which is key for future growth of AI. Let me give you highlights. First we brought together about 20 robotics companies under Robo holdings. And also we announced acquisition of ABB Robotics business with regards to Robo Holdings. So from our entities perspective, previously we started investing in those business through Vision Fund. With that Robo holdings shareholders are SoftBank with 58.7% ownership and SBF2 with 41.3% ownership and agile robot Skewed AI, SotoPank Robotics, Autostor. Those are the portfolio companies under Robo Holdings. By the sectors left is autonomous mobility or automatic driving or autonomous driving. Those are the companies developing those technologies. Wave is included. I believe that we showed a video of Wave technology in the past and Wave has been making tremendous growth. And also Nuro is one of the portfolio companies in autonomous mobility sector. And in the middle is automation infrastructure sector sector like warehouses or sorting at warehouses or robots to do the works and system to let robots work. So those are the companies developing these technologies. And on the right hand side is aerobatics. And in the future humanoids will be included in this area. They have started their businesses in their respective areas with their respective expertise. We have invested in startups, but even though you call them startups, they have grown significantly already from a valuation perspective. In the latest round for example skilled AI valued at 14 billion, wave 8.6 billion zipline autonomous drone technology developer value at 7.6 billion. Nuro they announced auto driving system program valued at 6 billion. So size wise they can be called unicorn. So they have grown dramatically and we have been investing in those portfolio companies through Vision Fund 2 and they are entering into the next stage. I mentioned tremendous recovery of Vision Fund performance and obviously OpenAI contributed a lot. But that's not the only story behind the significant recovery of SoftBank, Vision Fund 2 and ABB Robotics business. We are expecting to close acquisition by end of 2026. This slide shows key strengths of ABB Robotics. They have a presence in over 50 countries with 7,000 employees and 500,000 robots. And their human resource and talents are. Amazing. And they have capacity of 100,000 units per year. That's production capacity with three sites and from R and D to manufacturing and sales and service. They have an end to end capability. Traditionally we often invest in smaller startups, but ABB Robotics has already built a strength and foundation together. With such a strong robust business, we should be able to expect a lot more for the physical AI. Last but not least, financial policy. But before I go into that, because we are investment company, so let us also share with you the investment amount so far back in fiscal 2023 and fiscal 2024 we actually were kind of slowing down in investment activities. But after the COVID we were pretty much slowed down. But last year, mainly driven by OpenAI investment, we have invested about $44 billion this year. What we have already decided so far is the follow on investment including 10 billion that we have executed. So 30 billion in OpenAI and ABB Robotics $5.4 billion and end of December digital bridge acquisition was announced last year. So this payment is coming sometime later this year which is expected to be 3.1. So in total commitment wise 38.5 billion has already been decided. And that's the amount we are looking in our investment capital. And as a bridge facility wise 10 billion has been secured and we will be switching to the permanent finance after the one year. So the asset takeout wise, as you look at the size of our net asset value, somewhere close to 48 trillion yen and the majority of them are the public securities. So we believe we have quite a good source here to be able to flexibly. Choose the best takeout finance from there with no rush, no change in the financial policy. And this is the most important thing for us. In AI era with lots of growth here and there. So Masa has a lot of things that he wants to do. Management also like to do many things. But we do need to manage and have a discipline. So that is why we have this financial policy to maintain our loan-to-value less than 25% and also maintain our at least two year worth of bond redemptions in cash position. So keeping this financial policy actually rules our investment amount. So as an investment company we do not set the budget for the investment, but always like to make sure that our company is safe and sound. And in other way to express that this is a financial policy which rules our investment amount, which is very easy to understand I believe, but also it's the most important policy for us. So keeping this policy. Makes us a best relationship with our stakeholders, including shareholders, bondholders and others. And for them we would like to live up to their expectations under such financial policy. And here on we are still looking ahead over the next 30 years. Because the AI revolution just launched, just started and we aim to be at the center of the AI Revolution and we want to be the company worthwhile to be the center of the AI revolution and it needs to think about what we need to be doing, what needs to be done and that leads us to the objectives or our goal. And there are many things that we need to do, but we would like to do it one by one. So with those four pillars are the main focus for us and not only this, but at the same time we would like to do many things that are interesting for the company. Our journey has just begun. So together with AI Revolution, I think that the journey has just begun. So here we are lined up. We are the kind of financial side people, but our role is to make sure we synchronize together with the management strategy so that we will be able to seek for maximizing our enterprise value of with safe and sound financial base. That's our role here. So every quarter that I hope we will be able to make such a safe and sound financial report updated to you. That is all from me. Thank you. Now we'd like to take questions. First, we'd like to take questions from the floor. Please wait for the microphone and start with your name and the company. For those participating online, please access Zoom using the instructions provided in the email sent to you in advance. To avoid audio feedback or looping, we kindly ask that anyone asking a question refrain from connecting to any live stream other than the Zoom webinar. If you have a question, please click the raise hand button and wait until you are called on. If you wish to withdraw your question, please click the lower hand button. If you are joining a Japanese Zoom, please ask questions in Japanese. We like to take up to two questions per person so that we can take questions from as many people as possible. First, from the floor, Yagi from Nikkei Newspaper so OpenAI elect the great financial results and you plan to invest more in OpenAI, I believe. And I wonder if you remain confident in OpenAI's growth and are there any plans to Invest not only OpenAI but also other companies similar to OpenAI or you would rather focus solely on OpenAI? Thank you for a question. We are open to any possibility. So we have a strong relationship with OpenAI to move GenAI going forward. And in this sector OpenAI has quickly gained market share. There are great competitors with great services. I'm sure that they are going to have more users coming in, which is good because the value of the sector or the industry is not determined by only one company. Value of an industry should be determined by lot of players competing each other

Yagi

to pursue better and delivering their service offerings to as many customers as possible. A lot of strong players. I hope that OpenAI will grow together with those strong players in this space. Thank you. Second question is about Stargate. Could you give us an update on the Stargate? You talked about Texas in your presentation and in Texas and in Ohio. In Ohio I believe that this is for making equipment for data centers in Texas. If you could give us any update on how much you have built so far and if there are any other locations on which you can give us any update. Yes, this Millam county in Texas. The construction of this data center is going well at very good speed and they already have a tenant and this is a part of Stargate big project. Definition of Stargate project has been evolving which I communicated to you before. OpenAI, SoftBank and Oracle are involved in the data center project and we have not announced yet but they are working on preparation and researching and developing in different locations and once we are ready we should be able to communicate with you accordingly. If I ask you a follow up question like one in PayPay which is outside the Stargate project scope, but while you work on Stargate but also outside Stargate scope, do you have any plan to work on data centers in different locations? What definition of a Stargate I think is rather flexibly considered if I may put into that way.

Suga

Thank you very much. The next question in the front row on the right, Suga from Nikkei Newspaper. I also like to ask you about OpenAI. So you as a shareholder, I believe you are also talking to their CFO Sarah and regarding IPO process, what kind of communication have you been having with her? From the investor's point of view, not only us, that's something that we have high interest but that's the question that they should be answering so I hesitate to make any comments about that. Understood. Another question from me, Loan to value so since April that you've been also making enough financing action as well. So what is the number's latest number and what is your outlook for the loan-to-value as of the end of March? 17% is a loan-to-value that we have which I shared with you earlier Slide they test I assume it's about 15 ish percent but there are many things that are moving around so this number is pretty much estimate for the record since March end to May mid May our net asset value actually moving increasing by 8 trillion yen or so. So that's another advantage in terms of the loan-to-value. So net asset value I would say 48 trillion yen label which is record high in terms of the sound and healthy balance sheet point of view. That's how we've been having a diversification of the financing activities. So like a takeout facilities for the bridge finance we have one year or so. So in the meantime we would like to find the best mix of the financing options so that we will be able to achieve our objectives.

Asamra

Any other questions from the floor? Asamra from Nikkei business I have two questions. First about finance. At the moment you plan to invest 38.5 billion for the year. With regards to financing, there are options like a margin loan or bond issuance. But I wonder margin loan using OpenAI shares, is that something that you would consider? Consider? Yes. Financing with OpenAI assets like a margin loan is possible. We could do that. So how best we can finance? I think it depends on timing. Like I said, we consider as a part of takeout. So depending on market environment and timing, we will select options accordingly. OpenAI value is about 10 trillion yen of asset and I think we should be able to leverage that very well. The second question is, I think about three months ago when you made an announcement of our financial results last time you talked a little bit about what lot of people are talking about concerns of you are overly dependent on OpenAI but it's been. Different. I mean volatility is high so I wonder if there are anything that you are doing to address volatility. I think important thing is to have a mid to long term view. And if you're confident that this is what you need, you don't want to be influenced by short term volatilities. That's true to portfolio companies and that's true to data centers. So there are other opinions on those data centers or portfolio companies. And in the mid and long term run do we really need them? And if you look at data center for example, definitely. Obviously demand well exceeds supply. So that's something that it's worth working on. Even though there are some concerns due to volatility, I think it's worth trying. In data center sector for example, currently discussion is focusing around infrastructure. When you say AI or data center, technological evolution is very key. For example data center, it may cost 1 trillion now, but in a few years it may cost half. Just an example. And the power generation, liquid fusion, nuclear fusion technology, once it's implemented, the cost will be dramatically different from now. But on the other hand, if you sign a long Term lease at a certain fixed power cost there is a risk but risk factors are something that we have been considering for a long time and infrastructure is needed or is it needed from business perspective which we believe is needed and project owners should have an insight and capability to structure project finance.

Koko Nizaki

Thank you very much. Any other questions please? My name is Koko Nizaki from monthly magazine Factor. I would like to ask about the semiconductor. So in your presentation ARM's revenue can be five times in five years. So AI demands actually expanding. That's the kind of a movement we've been seeing to secure such semiconductor. Elon Musk in United States is having a partner with intel in trying to create the mass production TerraHub with 8 trillion yen or so. So to secure the semiconductor, would you invest in the mass production business? Do you have any consideration over to it? What is. What is your view on that as a softbank group semiconductor business or hand semiconductor segment. Is actually led by ARM and we have Jason, so why don't we have Jason to answer if you have any. If you have any view please.

Jason

Yeah, so in terms of investment into fabrication facilities, that's not something that ARM is doing. We do have long standing relationships with the fabrication companies. Specifically TSMC, the current chip that we announced just eight weeks ago or so that actually is committed volume to via TSMC. There's also chances over time that we could work with Samsung as well as IFS or Intel fabrication. But this initial chip, initial volumes right now are all going to be with TSMC and that's through an ASIC partner. We're not making direct investments or expanding into fabrication ourselves.

MJ

Any other questions? Thank you very much. Any others please? MJ from Bloomberg, A question about your financial strategy. Bridge loan, margin loan. It looks like you are actively using debt finance. But by accelerating your assets you can also reduce the debt. So I wonder if you have any view on that. If you sell assets, you would lose upside from the assets. So if you can finance without selling assets, that's better from that perspective since we have a good loan-to-value and financing costs are low. So at this moment bridge finance is the way forward. At the moment the next question is about data center business in Ohio. Maybe it's early for you to say something, but if the capacity is 10 gigawatt it'll be 500 billion and I want to have any financing plan to do that or if you have any view on that from financial strategy perspective, it's too early to say. I don't have any comment to make at this moment. Thank You.

Makino

Thank you very much. Any other questions please? Then second row from the front please. Makino from nhk. Bit redundant from the previous question, but these days AI news, when you look at that. Anthropic and methods are actually picked up by the news compared to OpenAI these days. That's how I feel so far. And Goto san, you are making a huge investment in OpenAI. Do you feel any concern or any risk or maybe including the technological competitions? But do you feel any concerns by only investing in OpenAI now? I myself is a finance guy, not the engineer guy, so I may not be able to fully answer your question. Of course size is large. The investment size is large. But having said that, our ownership stake is 13%, meaning there are many other investors. For example the latest financial round bites, Amazon, Nvidia, they are also investing large amount. So we are not the sole risk taker from financial point of view, putting everything in OpenAI. That's not the case. Actually. There are many hyperscalers also or acknowledging and valuing OpenAI service quality or their level of the technology. So I think that's something that you should also refer to Anthropic anthropic. I do understand there are such discussion there, but those are. The AI itself is a new segment, so there are many competitors, many players coming in even after this, I believe. And those can be the risk for the company. But at the same time. We should pay attention to the direction of the discussions in terms of the use of AI by having many players. We don't want to see the misuse cases afterwards. So we do. Those are the things that we should be discussing in advance. And that can be also involving the governments of the respective countries as well. So that's the direction that we should be drinking. And one another question from me. So just a confirmation. Anthropic investment in anthropic. Do you still keep that option? That's. I don't want to say anything for certain, but our main investments in OpenAI. Thank you.

Hiyako

Any other questions from the floor? Hiyako from GG News. One question. You exceeded 5 trillion yen for the first time as a Japanese company. What's your view? What's your impression? Well, number one in any area is great, but as I keep saying, market share prices, we don't want to be influenced in short term by the moves Again, we need to look at five, 10 years ahead and what should we do to keep this position going forward? That's something that we should more focus on. Thank you.

OPERATOR

I think that's all from the question from the floor. So I would like to now take a question from the Zoom. To avoid audio feedback or looping, we kindly ask that anyone asking a question refrain from connecting to any live streams other than the Zoom webinar. Once again, if you are joining the Japanese Zoom, please ask a question in Japanese. Nakagawa san tbs, please unmute and start your question. Thank you. Tbstb Nakagawa, can you hear me okay? Yes, I can hear you. So some media are covered that Softbank Group is planning to establish the company and try to have this company go public as a roads AI. Do you what is this company's role and what is the progress of this company so far? This is speculation coverage, so I don't want to make any comments about that. Understood. Thank you.

Nakagawa

Thank you. And next, Masuno san from Nomura securities. I have two questions. First to Jason San AGI CPU, the term of 2030, you said over time 10 billion AMD is 120 billion. So personally I think you could adopt 120 billion in terms of a share. AMD in monetary value basis, 50% share and your 15% share. I think they're both true because they are different cpus in terms of market value. ARM is one third of AMD and AMD has also gpu, whereas you have CPU and ARM architecture. I think it's a good combination. Then after 2030, your share 15% should grow further, I assume. Do you agree with me? 120 billion of TAM and market share 15% or more over 2030 and forward. What's your view on that?

Masuno

Jason sun so I agree that there's a great chance to meet or exceed our $15 billion target in five years just to back up on the total addressable market or TAM. We said it was going to grow from roughly 50 billion today to 100 billion by 2030. And we actually said 100 billion plus because there's a lot of debate as to is it 100, is it 200, whatnot? AMD came out a couple weeks ago and they said the TAM they think is 120 billion. There's been some others that have come out that have taken it as high as I think 170 billion. From our perspective, we expect to have at least a 15% share of that TAM just with our CPU. But if you look at the IP and compute subsystems that we sell to all the hyperscalers so Nvidia, Amazon, Microsoft, Google, ByteDance, Meta, et cetera, Meta is actually the anchor customer for the chip. But all the others that are buying IP we expect and actually Rene said a couple weeks ago he expects that we'll probably have up to 75% share of the server market by 2030. Just the chip portion of that will be at least 15%. There is of course chances that some of our hyperscaler customers who currently today buy IP may also buy chips and that's certainly a possibility and could lead to a number that could be higher than 15 billion. So you know the reason we believe we can have that kind of share is if you look at the hyperscalers today, as Goto said earlier, we already have a 50% share today and that's across Nvidia, Amazon, Google and Microsoft who are all have all deployed ARM based chips and they are the primary CPU that they are using to pair with their accelerated compute options as well as for general purpose compute.

Jason

Thank you Jason San Next question is to Goto San about the data centers. Medium count is 1.2 gigawatt and in golden counter 1 gigawatt were announced with SP Energy totaling 2.2 gigawatt and in Ohio 10 gigawatt. So total I think $600 billion or 100 trillion yen is what I'm looking at and the building is only a 1000 third might be 30 trillion and if equity portion is 20% then it's about 20% of arms market value. So my question is it's not a big number for you. Do you agree with me? Well how to structure finance is something that we need to study or more like Masuno san said such scenario could be true that we have a plenty of capacity if you go with that scenario. But again there are different ways of structuring financing and. In terms of fixed asset or construction or chip and system. I think in different areas different financing structure can be possible. So it's not gonna be only one time a big payment, maybe it's gonna be phased approach. So again we want to be flexible from timing perspective.

OPERATOR

Thank you very much. This concludes the Q and A session and we would like to conclude the Softbank Group Corp. Earnings results announcement for fiscal year ended 3-31-2026. Thank you very much for your attendance. The video footage of this meeting will be distributed on demand from our corporate website. Thank you very much once again for joining the Softbank Group Corp. Earnings result announcement for fiscal year ended March 31st, 2020.

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