SoftBank Group Corp.
SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, AI Computing Business, and Other segments. The company offers mobile services and broadband services to retail customers; mobile communications and solutions services to enterprise customers; ICT services products to enterprise customers; media, advertising and commerce services; and payment and financial services. It also offers design of semiconductor IP, chips, and related technology; development and sale of semiconductor chips; and sale of software tools and provision of related services. In addition, the company provides solar power plant development, construction and operation, and data center development and construction; robotics-related business; and owns professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; and distribution of video, voice, and data content via media. Further, it engages in alternative investment management; IoT business, certification service business, security solution business, and Linux/OSS business; operation of comprehensive IT information site; mail-order sale of stationery and services; operational support of brands' own e-commerce website; and operation of fashion coordination app. Additionally, the company is involved in the genetic testing, utilization of medical data, and AI application. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.
What does it do?
SoftBank is a Japanese company that does two very different things at once. First, it runs a massive mobile phone and internet business in Japan — think of it like Japan's version of AT&T, giving millions of people their phone plans and home broadband. Second, and more importantly to investors, it's a giant tech investment fund that bets billions of dollars on the world's most ambitious startups and tech companies — it was an early backer of Alibaba, Uber, and WeWork, and now owns a controlling stake in Arm, the chip designer whose technology powers almost every smartphone on Earth.
SoftBank is essentially a window into the future of tech — when it invests heavily in AI, robotics, or semiconductors, it signals where the smart (and very large) money thinks the world is heading. Its ownership of Arm makes it a central player in the AI chip boom, since Arm's designs are used by Apple, Nvidia, and nearly every major tech company. Right now, with AI spending exploding globally, SoftBank's bet on Arm looks more important than ever.
How does it make money?
SoftBank makes money through two main channels. Its Japanese telecom business — mobile plans, broadband, and business software — generates steady, recurring revenue, with annual revenues running around 7.8 trillion yen (roughly $50 billion). Its investment arm, the SoftBank Vision Fund, makes money when the companies it backs grow in value or go public, though these gains can swing wildly year to year. Arm, in which SoftBank owns about 90%, earns royalties every time a company uses its chip designs — and with AI chips in massive demand, those royalties are growing fast.
Why do investors care?
The core investment story is really about Arm. Arm's chip architecture is the foundation of the AI hardware revolution — from Apple's iPhone chips to custom AI processors being built by Amazon and Google. If AI spending continues to surge, Arm's royalty income grows, and SoftBank's stake becomes worth dramatically more. For the thesis to work, AI infrastructure spending needs to keep rising, Arm needs to successfully push into higher-margin AI data center chips, and SoftBank's broader tech bets need to stabilize after painful losses from bets gone wrong like WeWork.
Deep Dive
MemberA full investor briefing on SoftBank Group Corp. — history, leadership, risks, and outlook.