Q3 2024 SoftBank Group Corp Earnings Call
Yeah.
Thank you very much for waiting to everyone.
Now where you would like to start the Softbank Group Corp earnings results announcement for the nine month period ended December 31st 2024.
First of all.
Speaker Change: I would like to introduce today's participants.
[music] from list.
Speaker Change: We have you'll see me to the gold toe Board director and CFO.
Speaker Change: [music].
Speaker Change: Cosmical to me about that corporate officers, Chief Sustainability Officer, Senior Vice President and head of accounting unit.
Speaker Change: No need to go though.
Speaker Change: Therefore.
Speaker Change: It's been investment advisors in this big Global advisors.
Okay.
Speaker Change: Jason Child, Executive Vice President and CFO.
Speaker Change: Yeah.
Speaker Change: Today's announcement is live broadcast over the Internet.
Speaker Change: Yeah.
Speaker Change: Now I'd like to invite you'll see me to go toe to present, you the earnings results and business overview.
Speaker Change: Yeah.
Speaker Change: We forgot to please.
Speaker Change: Yeah.
Speaker Change: Okay.
Yeah.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Thank you for the kind introduction dishes got those speaking thank you very much for gathering and sharing your time with us today.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Yes.
Speaker Change: So this.
Speaker Change: Yeah.
Speaker Change: Max actually two in five years and half yes.
Speaker Change: Present at the earnings before me actually that the chairman and CEO and my favorite son has been Britain presenting the earnings but.
Speaker Change: Since then he start say.
Speaker Change: Same.
Speaker Change: And motivated to only focus on AI revolution. So he's been working very hard for the past two in house, yeah than many people wonder what its doing.
Speaker Change: And time to time.
Speaker Change: I was trying to kind of grief you what's he doing.
Speaker Change: Yes.
Speaker Change: About.
Speaker Change: This time.
Speaker Change: I believe.
Speaker Change: This quarter now that the we are able to.
Speaker Change: Clarify and share the message that I wanted to convey.
Speaker Change: And before that the do we have to.
Speaker Change: Big events.
Speaker Change: Okay.
Speaker Change: Of course.
Speaker Change: Uh huh.
Speaker Change: Road.
Speaker Change: To say.
Speaker Change: Yes.
Speaker Change: If the of course our objective.
Speaker Change: And sometimes soon that we will be seeing yeah, he's gonna be exceeding human beings capability. So we'd been thinking how should we approach to this role and hunker, we minimized the times to be spent to come through this era.
Speaker Change: And these are the full focus if we.
Speaker Change: To limit the full elements.
Speaker Change: First AI chip of course this is the biggest advantage.
Speaker Change: That do we have in our group because design capability that has been building a is going to be a still very much essential piece for the future developmental bag and based on that.
Speaker Change: We have.
Speaker Change: Various study and hypothesis and based on that Lee.
Speaker Change: Well to prepare the computing power and for that we need the huge size of the data center.
Speaker Change: Audi as possible.
Speaker Change: So they'll do it be able to take an advantage and utilized our fault the AI evolution and for that power is necessary to support such data center.
Speaker Change: And in addition, robotics, which we've been making and therefore, it's for the past 10 years or so that is.
Speaker Change: Another important area together with logistics that the AI can be a big leverage for.
Robert: So Robert.
Robert: It's still on the way, but the first things to first which is <unk>.
Robert: Supplying the.
Robert: Chip and also supporting the chip for AI and that comes through the Stargaze project announcements in the White House.
Robert: Together with President Trump.
Robert: We had an opportunity to share about project and yep.
Speaker Change: You see old friend Massa, Mr. Larry Ellison, what's also together with him and also that's shown partner Mr. Some ultimate from opening I was also down for that announcement.
Speaker Change: In the past too and say.
Speaker Change: What kind of commercial service Academy provides.
Speaker Change: And that came to Crystal intelligence.
Speaker Change: You may have an opportunity just to be able to see.
Speaker Change: E.
Speaker Change: The AR earnings announcements by Softbank Corp. The other day and there was some explanation about Crystal intelligence and also there was an announcements together with Mr. Surmount them out from opening I.
Speaker Change: We had a more than 500 companies with about thousand a businessperson are joined together to here.
Speaker Change: My son, and also some what they need to say are in addition to that we had that many E people from the financial institutions as well.
Speaker Change: If all the eight right now.
Speaker Change: For the service, yet, but that we would like to continue the study what would be the most nature, Saudi part or the task that we need to be solving. This is a service. So we would like to spend some time for that.
Speaker Change: And here on that I would like to share the highlights for this quarter.
Speaker Change: Important kpis and it does it bother you.
Speaker Change: It'll be it China up 30, Trillium and also loan to value 12%.
Speaker Change: It's a very much stay D D progressed.
Speaker Change: In addition, cash position. This is another important kpis in the this call Dr. Three months, we have increased.
Speaker Change: So that gave us the five children you end up the cash position.
Speaker Change: Net income.
Speaker Change: Yeah.
Speaker Change: Year to date.
Speaker Change: 610, $36 2 billion yen.
Speaker Change: Yeah, well, yeah basis, a 1.1 trillion yen increase.
Speaker Change: Number four as I mentioned Stargate Crystal intelligence. Those are the announcement. We made are these four points are the highlights that we have done for the quarter and a little bit after this quarter.
Speaker Change: And they may start.
Speaker Change: Into a bit details with our key kpis.
Speaker Change: Does it bother you loan to values and cash position both.
Speaker Change: All of those are that the hunting a very steady progress.
Speaker Change: As for net asset value.
Speaker Change: At the end of December and it was a bit of a bit short of 30, Chilean but if you look at the very latest number $33 five trillion and you can see here the breakdown outbound to the end of December.
Speaker Change: Break down these.
Speaker Change: A little bit of.
Speaker Change: Defeat difficult Danny Shepherd.
Speaker Change: But.
Speaker Change: After January.
Speaker Change: We'd been seeing a quite a good pick up on the share price from and T mobile.
Speaker Change: One of the biggest contributor.
Speaker Change: And right now that the pro forma basis, our knit Natus is buddy is about $33 5 billion.
The year on year, and excuse me and.
Speaker Change: I don't have this number is very much closer to the record high level for a net asset value.
Speaker Change: Considering a switch from the start of our business of course. It is still just the beginning of the AI era and.
Speaker Change: And the important thing is to keep the momentum.
Speaker Change: Every call that announcement.
Speaker Change: And thereby its good or whenever it's bad.
Speaker Change: We don't want to be too happy you are to set about the share price volatilities, but I would like to focus on five one years.
Speaker Change: B as 10 years and make sure that the way you would like to keep the momentum or increasing and that would be the most important trend for the investment company like us.
Speaker Change: Our cash position.
Speaker Change: Do you see.
Speaker Change: In the past three yes, we've been keeping a very ample.
Speaker Change: Financial resources.
Speaker Change: At the end of December.
Speaker Change: We have some increase in cash position because.
Speaker Change: We had the.
Speaker Change: Margin loan capacity used it I think I'm sure.
Speaker Change: Has been increased by a 0.8 trillion yen.
Speaker Change: And also some issuance of bonds.
Speaker Change: We have increase of zero point Unfortunately, the onion.
Speaker Change: To come back for next two years.
Speaker Change: Bond redemption is about one point to two there.
Speaker Change: A 2.1 trade Union.
Speaker Change: So if you look at this number to point to one 2 billion is the cash position our financial policy that we've been communicating to the market and actually you can say you can tell that that this is very safe level of cash position.
Two value.
Speaker Change: This is also okay are important kpis that asking everybody do follow in right now, 12.9%. We had two safe again for this quarter as an investment company, we would like to seek for the even higher performance.
Speaker Change: Yeah.
Speaker Change: So that is going to.
Speaker Change: B.
Speaker Change: I believe that this is a message that maybe you can make a little bit more challenged for the equity base as well as the credit investor.
Speaker Change: Next consolidated result.
Speaker Change: Gain on investment income before income tax and net income.
Speaker Change: And the net sales.
Speaker Change: We are making a steady growth in all areas.
Speaker Change: As a holding company.
Speaker Change: Not really a paying too much attention on sales, but the gain on investment.
Speaker Change: Was up by $2 seven Trillium.
Speaker Change: Income before income tax up by 1.1 Trillium.
Speaker Change: Yeah on year net income B.
Speaker Change: We posted a 668 36 billion.
Speaker Change: By over one Chilean yen, so again compared to the last.
Speaker Change: Same appear Hilda we saw a huge improvement.
Speaker Change: Looking at the numbers by quarter. However.
Speaker Change: You see some ups and downs in the third quarter.
Speaker Change: We saw a loss in investment and then net the loss that's.
Speaker Change: That's all post J gang.
Speaker Change: But this is a very a small aspect of the total picture.
Speaker Change: If you look at the gain or loss on investment more in detail.
Speaker Change: Yeah.
Speaker Change: For example, two numbers investment business of holding companies and and S V F which comprise of this.
Speaker Change: Number mainly.
Speaker Change: Vision fund posted a loss of 339 and that's been business about what the company has posted 180.
Speaker Change: 108 billion loss.
Speaker Change: But this 108 billion loss by investment business, a whole lot of companies.
Speaker Change: You look at in detail.
Speaker Change: We posted a loss of 377 billion of Alibaba shares because the share price went down but remember we monetized Alibaba share.
Speaker Change: But at least you'll have some shares for our Florida contract.
Speaker Change: So the value of the share price and value of dairy about jabil, we have to look at both.
Down on the share price is presented Ah.
Speaker Change: Straight here.
Speaker Change: Yes.
Speaker Change: And a team of us yeah.
Speaker Change: Went up by.
Speaker Change: Sorry.
Speaker Change: By 185 billion. So net net we lost 108 billion, but one share price went down derivative value goes up.
Speaker Change: So even though we saw a loss.
Speaker Change: In terms of investment business, the holding companies, especially.
Speaker Change: At Alibaba.
Speaker Change: Even though we saw a loss of 339 billion, but we saw also derivative gain of 686 Oh.
Speaker Change: Danny.
Speaker Change: You can say.
Speaker Change: The numbers are netted out.
Speaker Change: So when that trauma will be expired, we will see.
Speaker Change: All net out and zero.
Speaker Change: You could exclude Alibaba at all and then you couldn't see the result of our wheel in the old term of performance.
Speaker Change: And the impact of foreign gain or loss on net income, which could it be very.
Speaker Change: Significant.
Speaker Change: Flooring.
Speaker Change: Exchange rate is a different animal compared to our corporate performance and corporate management.
Yeah and gets weaker we posted a 540 billion loss.
Speaker Change: Pushing down net income that it was the result of the third quarter.
Speaker Change: Yeah. It was 142 E M per dollar as of end of September, but it got even weaker.
Speaker Change: 280.
Speaker Change: 58 <unk>.
Speaker Change: As of December 30.
Speaker Change: That had a positive impact on NAV up by three Chilean.
Speaker Change: Thanks to the share price and also foreign exchange rate.
Speaker Change: From accounting perspective.
Speaker Change: Weaker yen has positive impact on equity, but negatively impact on consolidated net income.
Now Softbank Vision fund performance.
Speaker Change: Yeah.
Speaker Change: As I mentioned little bit earlier.
Speaker Change: October through December last year, we posted it.
Speaker Change: Two point.
Speaker Change: $3 billion.
Speaker Change: For S. P. One 1 billion and S feature.
Speaker Change: Almost.
Speaker Change: One 2 billion that was the loss from the investment if you look at the vision one.
Speaker Change: Vision fund one excuse me.
Speaker Change: If you take a look at the left hand side.
Public portfolio companies.
Speaker Change: No.
Speaker Change: Some companies are so value app like a grab or.
Speaker Change: Coupon so value loss.
Speaker Change: Partly due to political turmoil in Korea, and all of December as for Vision Fund two.
Speaker Change: Most of the portfolio companies are are private companies.
Speaker Change: Yeah.
So this particular quarter.
Speaker Change: Those companies are so.
Speaker Change: Laura fair value.
Speaker Change: Yeah.
Speaker Change: And also weaker yen and the Korean currency against Stella had some impact on their performance.
Speaker Change: Bite a corner since FY 'twenty two.
Speaker Change: As you can see in the second quarter, we saw a positive number and in the third quarter, we saw negative number which was disappointing but.
Speaker Change: We are confident with the trend itself.
Speaker Change: As for our cumulative investment return.
Speaker Change: Fund one.
Speaker Change: They have they don't invest in yeah.
Speaker Change: Opportunities anymore.
Speaker Change: Against.
Speaker Change: Yeah.
Speaker Change: Investment cost.
Speaker Change: Yeah.
About 70 billion already existent and.
Speaker Change: Vision fund two.
Speaker Change: They have a many portfolio companies that have a great potential in the future and they are actually growing.
Speaker Change: So we are hopeful that those all portfolio companies will improve their performance.
Speaker Change: Talking about the put the folio.
Speaker Change: Okay.
Speaker Change: Year to date.
Speaker Change: At least so far.
Speaker Change: For listings.
Speaker Change: This year and on the right hand side, you see total fair value of late stage portfolio.
Speaker Change: So this rebellion.
Speaker Change: For example, something vision fund one has by dance.
Speaker Change: And.
Speaker Change: Fanatics.
Speaker Change: Yeah.
Speaker Change: And D D.
Speaker Change: Which can be set as a private company as for vision fund two.
Speaker Change: There are a lot of I P O candidates.
Speaker Change: And other companies are almost already for I P O like the Kalana.
And paint Bay has a great potential.
Speaker Change: And open AI, two which we made a follow on investment.
Speaker Change: So again, we have a great expectations from those portfolio companies.
Speaker Change: All right.
Speaker Change: Portfolio companies, whose.
Speaker Change: <unk> got the list this quarter.
Speaker Change: Quarter three game.
Speaker Change: It was the largest tech M. P O globally intend to 'twenty four.
Speaker Change: Total offering size was.
Billy: Hunter 13, Billy.
Billy: And are we believe that this can be even going further or for meat and low mature I mean.
Billy: And Softbank Vision fund made a new investment as you can see here, including data bricks.
Billy: Which it delivers integrated cloud of black.
Billy: Based platform them.
Billy: To enterprises, and they won pioneer cutting edge data centers in Asia and helium.
Billy: It involves next generation fusion technology.
Billy: To produce low cost clean energy.
Billy: And we're off.
Billy: It develops.
Billy: Cable quantum computers.
Billy: So.
Billy: In the last quarter.
Billy: Those were the major investment to me to by Vision Fund.
Billy: Yeah.
Billy: Open AI.
Billy: Which everybody is interested in and looking at at the moment.
Billy: He made primary investment in September 20th century Forum.
Billy: And are we did a secondary investment in January total investment so far as to by then.
Billy: As you can see.
Billy: Monthly.
Website the visit.
Billy: Compared to other players.
Billy: Hi.
Billy: It's growing.
Billy: Exponentially and by far are the biggest.
Billy: AI entity.
Billy: And Softbank group.
Billy: Has a partnership with the open AI and significance of the partnership can be presented them in a chart like this.
Billy: [laughter].
Billy: And deep seek by the rain is shown here in green.
Billy: Line at the far right the bottom.
Billy: And as the new move in AI sector of the shooter won't come to someone like a deep sea.
Billy: Now let me go into very smooth.
Billy: Good quarter.
Billy: Sales royalty revenue highest ever.
Billy: Yeah.
Billy: And our non-GAAP operating income.
Billy: Actually.
Billy: Exceeded analyst consensus.
Billy: Speaking of royalty revenue there are two major growth drivers one is the ninth penetration.
Billy: Benign.
Billy: Compared to our previous Ah Burgeon V eight.
Billy: Posted by unit royalty Chi is around double.
Billy: So in mobile or cloud market.
Billy: Being adopted.
Billy: Gives us.
Billy: A big contribution for the royalty revenue and the way you're expecting that this would be even more penetrated over the market.
Billy: In the compute sub systems or a C is this.
Billy: Sure.
Billy: D CS.
Billy: Several licenses combined to package products.
Billy: The service.
Billy: So that the people who use.
Billy: Does not need to design from the each chip from my T. IP. So that they can reduce the development time and also cost and at the same time, you can expect the higher capacity capability of chip itself.
Billy: And also more and more penetration that we've been seeing a bomb technologies are adopted adoption.
Billy: Variety of the services are now provided you did I think technology and that's an.
Billy: The example, here grab it on full from AWS.
Billy: I do cobalt Aw 100 from Microsoft.
Speaker Change: And axiom from Google.
Speaker Change: Those are all using these chips.
Speaker Change: And license revenue actually have some fluctuation ups and downs because based on the time of the agreements or the time of the renewal about brain Mets or the tenure of the agreements that may fluctuate that license revenue.
Speaker Change: So here.
Speaker Change: We.
Speaker Change: How about numbers for annualized contract value in the bar graph shown below Ah is a trend and if you looked at the a C V annualized contract value actually is making a very steady.
Speaker Change: Increase yeah.
Speaker Change: So even with the year on year basis E. C. B went up by 9%.
Speaker Change: In a recent.
Speaker Change: Earnings announcement was announcing announced the guidance.
Speaker Change: <unk> 2024.
Speaker Change: The current our guidance.
Speaker Change: Revenue guidance between $3 94 to 4.40.
Speaker Change: In the non-GAAP operating expense up to 2.07 billion and the non-GAAP fully diluted earnings per share of 1.56, a 1.64.
And we have a little bit of a decrease in our top number four the Arabian here, but the important thing is if you look at midpoint you you see actually the midpoint has increased from $3 95 to $3 99.
Speaker Change: Yeah.
Speaker Change: And Stargaze project.
Speaker Change: I would like to make a little bit of a comment on.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Where you would like to accelerate the evolution with the support of is the Star Gate.
Speaker Change: And to make the time happens that the way you would like to support the infrastructure side.
Speaker Change: And here is the project overview.
Speaker Change: Softbank group.
Open the AI.
Speaker Change: Are these part nuts.
And we have Oracle M. G X M G X.
Speaker Change: Is the investment vehicle from me.
Speaker Change: Middle East.
Speaker Change: Chairman.
Speaker Change: It would be served by a mass migration.
Speaker Change: And the operation lead it'll be open AI software group, who will be leading finance.
Speaker Change: So all Buffalo next fall, yes, we will be deploying $500 billion in first where you like to start the battle of deploying $100 billion.
Speaker Change: Yeah.
Speaker Change: So $500 billion, that's 75 to you again in Japanese yen, that's a quite the eye opening number.
Speaker Change: But the.
Speaker Change: It is not that we Softbank group.
Speaker Change: It would be.
Speaker Change: Raising money is the assets are cash for the tens of trillions of a yen where you'd like to set up the project.
Speaker Change: Together with lenders equity investors that the way you would like to pursue the project together with them.
Speaker Change: There will be a variety of data center that they will be addressing in the size may differ one by one but of course, that's on the Mega data Center.
Speaker Change: Other than the Stargate project, where you would like to pick up.
Speaker Change: Data center.
Speaker Change: And our work on address that.
Speaker Change: After accumulating such airports in the projects we are assuming.
Speaker Change: B G bingo are reaching close to or maybe on $500 billion.
Speaker Change: In in other right away that the weekend so other than the project illustration.
Speaker Change: The earliest or the first one would be for example, we call it project one.
Speaker Change: And the next one what I, maybe in parallel well he may be addressing project to project three project for and so forth. So each project.
Speaker Change: So each one of the project.
Speaker Change: Maybe this city in this stage this real estate available here that we would like to.
Speaker Change: Create and build data center.
Speaker Change: And did he buy chip systems.
Speaker Change: And also need a supply of power so that whole project will be addressed by just stargates project.
Speaker Change: So amount. This large however, how are we going to raise such money.
Speaker Change: Yeah.
Speaker Change: Maybe.
Speaker Change: Some of you are very familiar are on this but the.
Speaker Change: Total amount of the project.
Speaker Change: For those partners of this project to be playing on the equity.
Speaker Change: <unk> founder.
Speaker Change: And they're also having a chance.
Speaker Change: <unk> approach.
Speaker Change: By risk.
Speaker Change: So that they would be able to secure the necessary amount in total.
Speaker Change: So equity.
Speaker Change: And.
Speaker Change: Maybe.
Speaker Change: Clifford chance.
Speaker Change: Very top most.
Speaker Change: Most safe.
Speaker Change: Product.
Speaker Change: Like our senior debt.
Speaker Change: So below there.
Speaker Change: Me.
Speaker Change: Have some subordinated mezzanine.
Speaker Change: And so forth.
Speaker Change: So based on each tranche, we will have about each respective investors around the world.
So some in Bicester who'd like to go for a better return than even they need to.
Speaker Change: I'll cover some risk or some investor prefers the safe, but a steady return.
Speaker Change: So.
Speaker Change: Project finance when they called it how much market availability there.
Speaker Change: Maybe another question you may have.
Speaker Change: Roughly speaking.
Speaker Change: In the last two years, we don't have velocity, a number but the 2022 and 2023 rise in one year.
Speaker Change: Between 350 billion to 380 billion, what's the OXXO numbers.
Yeah. So project finance market is such a huge market as well. So this time, we will be addressing.
Speaker Change: <unk> projects, which you have built AI infrastructure, usually when you call. A project finance you may think about power generating plants or communication facilities all.
Yeah.
Speaker Change: Some productions.
Speaker Change: All lines.
Speaker Change: Speaking of infrastructure.
Speaker Change: Compared to a communications infrastructure power infrastructure and infrastructure is still new to the market. So how much.
Speaker Change: Return can we expect.
Speaker Change: That's something that we need to speak with vendors and investors and they will have their own calculation for that so we would like to design a good instrument, which will suit their demand and their preferred brands well of course, we haven't set the numbers yet but in annual basis 350.
Speaker Change: <unk> billion to 380 medium project finance market is they are assuming there.
Speaker Change: Although we may be able to raise 100 billion out of that or if there is any other attractive instrument.
Speaker Change: And this of course that there will be a going for that.
Speaker Change: So I believe that the product or instrument is going to be very important so that the where you'd like to seek for the win win a design for this instrument so that do able Josh joked lenders or investors, who would appreciate each chance. So that the will you be able to.
Speaker Change: Look project by project, so that we can make a robust result out of that.
Speaker Change: So for us.
Speaker Change: The money that we need to bear.
It's going to be very bottom, which is equity portion on the therefore, we believed we would be able to address. This for example, one trade Union project is there.
Speaker Change: One Kid you again project.
Speaker Change: Very bottom equity portion depending on the project. However, it can be 10% to 20%.
Speaker Change: After portion can be equity as an example here.
Speaker Change: For example, one trade Union project equity say, 10% now that's 100 billion yen hundred PD onion divided by full company full partners here. So we don't bear hundreds video in total it's gonna be a tens of billions. So that's the kind of amount we are looking.
Speaker Change: So base, we do like to calculate and we may be able to expect to some extent how much project. Once we have a for example, 100 billion you end up the project how much equity do you need to put in that amount.
Speaker Change: Can be well managed within our financial policy of keeping our financial policy and addressed that so that's how we are looking up for push them. So like we have been communicating with investors and market that the financial policy is always on.
Speaker Change: For us and we like to pay a very close attention to that to address.
Speaker Change: The projects and the other technology partners, we have of course.
Speaker Change: And.
Speaker Change: N V D S.
Speaker Change: Microsoft Oracle.
Speaker Change: Together with the open yeah. Those are the industry leaders is going to be a key technology partners.
Speaker Change: Now, let me talk about Crystal intelligence.
Speaker Change: Which was announced by Mr phone the other day.
Speaker Change: He appeared himself for the first time in a long time.
Speaker Change: Yeah.
Olivia this month together with Sam that he made announcement strategic partnership.
Speaker Change: Softbank group arm, and Softbank Corp, which is our telecom unit today.
Speaker Change: Together with open AI are we will look to get that share.
Speaker Change: Dry the Crystal intelligence orders Crystal eight.
Speaker Change: Intelligence.
Speaker Change: You're going to accelerate adoption of AI agent for enterprises. So what do we want to do is chi.
Speaker Change: Yeah.
Speaker Change: Securely integrate all systems and data all the companies so that we can provide.
Speaker Change: Provider.
Speaker Change: Most innovative AI customize for them.
Speaker Change: And even to help accelerating their operation processes and improvement of their businesses more detail. If you can see the slide.
Speaker Change: Talking about.
Speaker Change: Data or information to run the business.
Speaker Change: Our company could have.
Speaker Change: These kinds of informational data as you can see on the left hand side, including email.
Speaker Change: Our business discussion, we close meeting materials etcetera and system so scores.
Speaker Change: So those data will be input into crystal.
Speaker Change: And Crystal intelligence.
Speaker Change: Learns.
Speaker Change: To improve.
Speaker Change: The quality of inference.
Speaker Change: And output would be.
Speaker Change: Our capability for a company G.
Speaker Change: Transform their business operations.
Speaker Change: And turn them into our AI agent and they can operate and automate their operations and business management.
Speaker Change: But we want to try.
Speaker Change: By utilizing a lot of data that we have.
Speaker Change: Before releasing to a customer.
Speaker Change: Looking back 17, 18 years ago, when we launched iPhone in Japan, what we did was to have group companies to use iPhone.
Speaker Change: Completely change the business phones to iphones and they let them use iPhone for their own businesses before marketing them to the customers.
Speaker Change: Also we saved a lot of paper.
Speaker Change: Again my point is if.
Speaker Change: If you want to be committed.
Speaker Change: To a particular product.
Speaker Change: You need to try buy yourself.
Speaker Change: Before.
Speaker Change: Sharing.
Speaker Change: At June <unk>.
Speaker Change: Customers.
Speaker Change: So learning from those experiences.
Speaker Change: We are going to do the same which is to have a softbank group companies to use this AI capability.
Speaker Change: And market to.
Speaker Change: Japanese enterprises in Japan, the sales effort will be mainly driven by a Softbank Corp.
Speaker Change: And our group, Okay, three beryllium as an annual approaches.
Speaker Change: Yeah.
Speaker Change: And once commercial products.
Speaker Change: Our rating.
Speaker Change: We have group companies to use the products and they'll be we'll get a fee from those group companies.
Speaker Change: M pay for use basis.
Speaker Change: Don't know how much.
Speaker Change: And which of the group company will use the crystal.
Speaker Change: And we need to figure out what would be the most attractive products that we can sell to the market. So that's something that we want to Jim before releasing at Shea our commercial market.
Speaker Change: As for the structure as you can see here.
Speaker Change: Softbank open AI, Japan will be held.
Speaker Change: Equally by open AI and intermediate holding company, which is held by Softbank Corp, 51% and by Softbank group, 49%.
Speaker Change: And Softbank will consolidate S be open AI, Japan.
Speaker Change: And we hope that we can get started as soon as possible.
Speaker Change: And started developing a product.
Speaker Change: And.
Speaker Change: Want to help transforming all industries in Japan, and Softbank will have an exclusive right to market the product.
In Japan.
Speaker Change: This is a famous a message that he delivered when we made an announcement the other day.
Speaker Change: This partnership with Softbank or accelerate our vision for bringing in transformative AI to some of the world's most influential companies starting with Japan.
Speaker Change: Again, we won't share.
Speaker Change: Launched a service.
Speaker Change: As soon as possible last but not the least our finance strategy, which remains the same.
Speaker Change: Her to financial policy.
Speaker Change: Maintain L T V below 25% in normal times.
Speaker Change: We want to maintain at least two year worth of bond redemption in cash.
Speaker Change: And we secure recurring distributions and dividend income from S. P F and other subsidiaries. This policy remains unchanged for this year.
Speaker Change: As the finance unit.
Speaker Change: Our mission is to simplify our business operations.
Speaker Change: We want to keep.
Speaker Change: At the same pace as how business goes.
Speaker Change: But again at the same Tommy we want to really stick to our financial policy.
Speaker Change: For FY 'twenty 'twenty four all finance chose to take E S.
Speaker Change: She investment for future girl net asset value.
Speaker Change: One example is our investment in open AI and started project and Crystal intelligence.
Speaker Change: This is just the beginning.
Speaker Change: And.
Speaker Change: There are.
Speaker Change: A lot of.
Speaker Change: Ways to explore but the goal is the same.
Speaker Change: As for invested amount looking at Q3.
Speaker Change: Oh, that's down 1 billion or 600 million.
Speaker Change: But we made $1 5 billion in January so.
Speaker Change: Somewhere around a 2 billion is something that we want to.
Speaker Change: See as investment, but after the announcement of a star gate.
Speaker Change: It depends on how the project goes, but we may accelerate our new investment going forward.
Speaker Change: Share buyback, which we have been doing for some time.
Speaker Change: That progress at G D.
Speaker Change: Max and now allow us at 42%.
Speaker Change: In summary.
Speaker Change: Yeah.
Speaker Change: NAV cash position.
Speaker Change: Net income.
Speaker Change: Big announcements again, we want to realize it's high and even to lead and the efforts and we will explore different opportunities and they'll be making steady progress towards the summit. Thank you very much and I would like to happily take your questions.
Speaker Change: Now where you'd like to take questions.
Speaker Change: First we would like to take questions from the floor.
Speaker Change: Please wait for the microphone.
Speaker Change: And start with your name and affiliation.
Speaker Change: For those who owns them.
Speaker Change: Please press raised hands button and wait for your name is called.
Speaker Change: These also refrain from connecting to other livestream too.
Speaker Change: To avoid any echoing.
Speaker Change: If you wish to withdraw your question please press la hands button.
Speaker Change: For those who joined in Japanese soon please make a Christian in Japanese.
Speaker Change: We would like to take up to two questions per person. So we take a.
Speaker Change: So that we can take as many questions as possible.
Speaker Change: For that.
Speaker Change: We would like to start from the floor now.
Speaker Change: Oh, Yeah, there's tons side for this role.
Speaker Change: Sure.
Speaker Change: Person please.
Speaker Change: Thank you M J from Bloomberg.
Speaker Change: You mentioned that the investment may be accelerated.
Speaker Change: And regarding Star Gate.
Speaker Change: You mentioned that it's going to be project by project basis.
Speaker Change: But hundreds of billion dollars execution.
Speaker Change: Is going to be the amount and I believe that the timing.
Speaker Change: Or the schedule.
Speaker Change: When the project is decided and we.
Speaker Change: What how much you'll be the initial investment amount.
Speaker Change: Would you be able to clarify on those please.
Speaker Change: That's my first question. Please yes. Thank you for your question.
Speaker Change: If I can talk about that I would love to however, the project has not being fully start that did of course, there are candidate sites and so on and.
Speaker Change: We have members that the start discussing on that.
Speaker Change: So the first case furthest first project.
Speaker Change: You would like to execute within this fiscal year.
Speaker Change: Overall project.
Speaker Change: I said that are we have on the existing speed of investment pace each through the balance sheet or through digital phone. So there are existing investments going gone on top of that we have star gate that will you, let us begin deploying with 100 billion.
Speaker Change: And that is going to be project by project and there will be a little by little therefore that would be kind of incremental on top of the existing as a piece of the investment. That's why I said, we may have some acceleration of the investment amount.
Speaker Change: As for our project whenever Lee ready when it comes to the site schedule.
Speaker Change: Our financing structure.
Speaker Change: I will share with you. So please bear with us for a moment and my second question.
Speaker Change: Yeah.
Speaker Change: There are many media covering open yeah, new funding round.
You Softbank group also participating.
Speaker Change: So 40 billion maximum.
Speaker Change: Maybe possible from Softbank group to participate in funding round by open. They I do you have any comment about that.
Speaker Change: And vision.
Speaker Change: The $5 billion.
Speaker Change: Is that related to maybe a new investment in our opinion.
Speaker Change: He could ask vision fun of me.
Speaker Change: Cmos in two months.
Speaker Change: Yes, let me go first.
Speaker Change: Yeah.
Speaker Change: There are I know there are many articles, but those are all speculation and I hesitate to make any questions regarding speculation.
Speaker Change: And that's full investment increase I believe the commitment increase for vision fund.
Speaker Change: If there is any.
Eddie: This is Eddie.
Eddie: Our investment we can flexibly increased our commitments. So that's also a case by case. So that we may also increase of the vision fund two we may increase and it is possible horse increase of commitment if we need to do so.
Eddie: Is that okay.
Speaker Change: Do you do you want to answer.
Eddie: Not only do you have comment.
Speaker Change: So I would reiterate the point and say go to Sun maid.
Speaker Change: For Vision fund two Youre correct in the December quarter at a commitment from Softbank group to vision fund two increased by 5 billion.
Speaker Change: It wasn't necessarily easy for any particular investments or the pipeline as you know.
Speaker Change: 2024, we made 22, new investments and a lot of AI companies.
Speaker Change: And this is to continue to allow vision fund two to continue investing in AI companies.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Next.
Speaker Change: From the floor.
Speaker Change: Yeah.
Morita: Morita from Toyo case, I first question about the Star Gate project Finance.
Speaker Change: You mentioned that you design a financial instrument that are attractive, which is very exciting for me, but when it comes to designing.
Morita: Debt finance.
Morita: Instrument is it going to be that a by Softbank group.
Morita: And you mentioned that.
Morita: Sure.
Morita: Our building data center like in Texas.
Morita: Have you executed project finance for that particular data center in Texas.
Morita: Are you alright ask or fine us help bank will take a lead them in terms of finance.
Morita: So my team will play a key role leveraging their expertise and experience to.
Morita: Work on financial instruments.
Morita: Fight wise, we have not.
Morita: Finalize and whenever we can communicate with you we will let you know.
Second question about a S I.
Morita: Okay.
Morita: Yeah.
Morita: Looking at the presentation and second quarter I Remember you mentioned three things data center chip and robotics, and you add dead electricity or power in your presentation. What is the background for example, nuclear fusion helium which are.
Ray: Ray you are most interested in in terms of electricity or power them.
Morita: Or more like.
Morita: Our investment and power company for example.
Morita: Yeah.
Morita: I think both could be possible for example, someone like helium.
Morita: That has.
Morita: Yeah.
Speaker Change: Technology, but that they can know Jim G used nuclear fusion for Alexa treat it like a power it's not.
Speaker Change: Validated for commercialization.
Speaker Change: But the.
Speaker Change: Demand is there in terms of power and electricity.
Speaker Change: And start Gate project.
Speaker Change: Yeah.
Speaker Change: We are looking at about for Es as the chair of them, but it's hard for us to predict how the technology evolves for example, nuclear fusion technology.
Speaker Change: Is it going to be validated sooner rather than later then.
Speaker Change: Yeah.
Speaker Change: We need to make a business plan to address such technology as a nuclear fusion.
Speaker Change: Yes.
Speaker Change: Some people have said that it takes three years some people sat in Es 30, yes, we don't know when such technology as validated so we cannot do wait until.
Speaker Change: Them. So we have to be flexible in line with our technical.
Speaker Change: Evolve these young not only helium, but also we are exploring opportunities.
Speaker Change: In the tech sector, and we want to make an investment that's sort of vision fund.
Speaker Change: The project size are huge.
Speaker Change: But.
Speaker Change: You want to make sure that the project is really narrowly focused.
Speaker Change: Then next question.
Speaker Change: Take on the role on your left.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: My name is Brent from Diamond.
Speaker Change: My first question.
Speaker Change: Is about joint venture with open AI.
Speaker Change: So as a usage fee $3 billion or the 450 billion yen.
Speaker Change: To be paid.
Speaker Change: And Softbank Corp.
Speaker Change: There are a group of companies is going to pay Softbank group based on pay per view or the paper use.
Speaker Change: So these 3 billion.
Speaker Change: Yeah.
Speaker Change: This may be a bit different way abusing money.
Speaker Change: Compared to the past investments by Softbank group. So this is not the investments does.
Speaker Change: This is going to be expense.
Speaker Change: I believe.
Speaker Change: Is that correct and also.
Speaker Change: For this expense.
Speaker Change: Yeah.
Speaker Change: I believe the.
Speaker Change: I'm going to ask you how you're going is it going to be effective in terms of expense as a CFO. How you look at this way you'll be using this money is this regarding like a R&D type of the expenses that you're now expecting the immediate return out of it all.
Speaker Change: This is gonna be sale for the joint venture. So it is okay to expense this amount oh. So so this three BDO and nobody expense how are you looking at the money. That's a question I have because the way you'll be using money is a bit different from I used to understand from softbank.
Speaker Change: Group.
Speaker Change: I was on a compensation for AI service. So I mean of course like you said this is going to be expensed, but three be empire. Yeah. How are you going to pay has not been finalized yet.
And first of all we.
Speaker Change: We don't have the service available yet.
Speaker Change: And in a few months or even when that are we going to be able to use this service and how are we going to pay.
Speaker Change: Full paper use a basis, how are we going to fit the pricing a scheme, that's also going to be finalized.
Speaker Change: Cake caused bancorp may use a law so it doesn't mean that the large expense.
Speaker Change: Needs to record in Miyagawa CEO of Softbank Corp mentioned on several timing his earnings that is gonna be pay for use and we don't know what they don't know how much they are going to use so that is something that we can discuss internally so where are you going to be.
Speaker Change: Our kind of the experimental and we kind of take it to SPG and SPG as a small company as a holding company.
Speaker Change: So.
Speaker Change: We will not be using large portion of it anyway, so but it will be I.
Speaker Change: Asking those operating company to utilize but we do need a little bit more time to finalize all of that so.
Speaker Change: So they may go into much detail the $3 billion.
Speaker Change: That I believe is going to be recorded as a sale of the joint venture if that's the case.
Speaker Change: R&D.
Speaker Change: It's not going to be.
Speaker Change: Okay.
Speaker Change: Gone.
Speaker Change: Because I don't believe that there's going to be breakeven right away. So that the money is going to go on for the development cost and everything else in the meantime.
Speaker Change: That also is a kind of a going ongoing discussion.
Speaker Change: How much money.
Speaker Change: From the JV point of view, who are receiving this money.
How much.
Speaker Change: Cost they need to expect to provide such a service that's.
Speaker Change: Based on that they may be able to see some margin or they may just go breakdown, even though they may go a loss.
Speaker Change: The another thing that we need to take a little bit more time to think about that in the for my second question was regarding stock age.
Hundred video and others to be the first deployment then the equity portion is the Softbank scripts portion I heard and that to be decided project by project you mentioned, but looking at the graph that you show us towards the compared to the total amount equity partial knee is going to be quite limited from.
Speaker Change: My understanding.
Speaker Change: Only looking at the slide so just for my reference 400 billion are you going to be bearing just a little bit and how much that would be.
Speaker Change: Do you have any kind of a good guidance.
Speaker Change: Within our range.
Speaker Change: How much.
Speaker Change: Financing.
Speaker Change: Do you need to do so I believe the SPG.
Speaker Change: Portion will be.
Speaker Change: Raised by its B G by project basis. That's my understanding is that correct. So can you give us a kind of a estimates.
Speaker Change: So the projects for the target and we are going to have project one project to project three and on.
Speaker Change: And for each project.
Will you be structuring the financing.
Speaker Change: By Ourself.
And when you look at project Finance World.
Speaker Change: Each respective project.
Speaker Change: May differ when it comes to how much acreage deep also necessary and that varies but still.
Speaker Change: Still in total view, it's going to be minority D of course of course, we have to cut it wants to do.
Speaker Change: Otherwise, we cannot really tell I don't want to go numbers first then that goes on so.
Speaker Change: For example, we have a company called Softbank energy, which is a power generation company in United States. So they have their own power generating project one by one so equity portion for that sometimes one digit sometimes teens, sometimes twenty's. So.
Speaker Change: It's always varies based on the project, but what I can say that it's still the minority equity is gonna be minority and that would be shared among those four partners. So based on that our basic understanding it won't be huge amount of money.
Speaker Change: Let me add one more so.
Speaker Change: Equity ratio may differ by project, you said and by project equity ratio is gonna be decided and J C. G. You will.
Speaker Change: Decide whether you're going to raise money or you use your own cash on balance sheet.
Speaker Change: Is that is that kind of by way of decision making.
Speaker Change: So you have a wife, Judy and you end up cash position right now so is that gonna be within that cash position or.
Speaker Change: Are you going to raise all are outside of our cash position.
Speaker Change: So the money out of our cash position.
Speaker Change: It's going to be on the equity portion.
Speaker Change: So we're not going to.
Speaker Change: Building a bridge for the total amount or anything like that that's not our understanding so from the beginning.
Speaker Change: We like to sit the structuring of the financing setting the participants and address that so that's.
Speaker Change: Our project finance schedules or the milestones that the we understand.
Speaker Change: So by project finance.
Speaker Change: It's b G portion of it's going to be decided and SPG will.
Speaker Change: Raise money outside from the of the company by project.
Speaker Change: So project.
It's not us that the re leading this financing is going to be project actually leading the financing is going to be non recourse financing. So it's not us that are leading the finance we.
Speaker Change: L. A portion is going to be limited to equity that's the kind of the main part for this structure.
<unk>.
Speaker Change: Yeah.
Speaker Change: Thank you any other question from the floor.
Speaker Change: Thank you.
Speaker Change: Got it from eating at home Kids I.
Speaker Change: I have two questions Newport Kids I syndrome and first.
Speaker Change: It is reported that.
Speaker Change: Iran.
Speaker Change: We will propose to buy open AI at 19, 7 billion and some alderman shows he's not going to occur.
Speaker Change: Accept that offer.
Speaker Change: So actions like.
Speaker Change: That by ear them.
Speaker Change: Do you think that.
Speaker Change: It would have an impact on stargate visibility or other projects that you want to proceed with them.
Speaker Change: Yes.
We heard the news and we were little bit surprised.
And Iran has his own a vehicle.
Speaker Change: So that means.
Speaker Change: He can be a competitor.
Speaker Change: And that says something like this it could happen.
Speaker Change: But it's up to open AI to make a decision we will see how it goes.
Speaker Change: And.
Speaker Change: Following the investment in open and I, even maura, it's kind of a speculation so we cannot answer to this specific speculation at the moment.
Speaker Change: Next question is about you.
Speaker Change: And that you refrain from talking.
Speaker Change: Talking about the further following investment and someone like open AI and the Star Gate.
Speaker Change: It seems like you are confident with the financing the project.
Speaker Change: But when it comes to.
Speaker Change: Investment size is big.
Speaker Change: Big five Julien yeah.
Speaker Change: Then.
Speaker Change: I Wonder what you are going to into the stage, where you accelerate talking or communicating with potential investors globally.
Speaker Change: Talking about the other cash puts you show them when you set five Chilean yen yes.
Speaker Change:
Speaker Change: In fact, the two plenty.
Speaker Change: John.
Speaker Change: That.
Speaker Change: Some people may say and some people may say that it's.
Speaker Change: Inefficient, if you have a too much catch publish them.
Speaker Change: But.
We won't you.
Speaker Change: Make sure that we are flexible.
Speaker Change: We'll never.
Speaker Change: Wherever something happens.
Speaker Change: Of course going for Ida as we spend than the cash position will decrease but still we are and very safe.
Speaker Change: Area.
Speaker Change: Two year old bond redemption as about 2.1, Chilean we have way more than that on top of that we have a 34 Chilean.
Speaker Change: So he said Trillium Ava.
Speaker Change: Net asset.
Speaker Change: Obviously not encouraging barrings.
Speaker Change: And arm is going to continued actually grew and the open AI continues to grow and to pay pay and other vision fund portfolio companies will continue to grow.
Speaker Change: And.
Speaker Change: Those could have.
Speaker Change: Could you give us more opportunity for us too.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Finance.
Speaker Change: We could have more options and we need to continue to investment.
Speaker Change: Yeah.
Speaker Change: We need to.
Speaker Change: See the plan at Shea cultivate in one to two years ahead.
Speaker Change: So the investment the style it may be different from other.
Speaker Change: Investment companies, but again net asset value is the key.
Speaker Change: And.
Speaker Change: Even to keep our net asset value, even though we are continuing to invest.
Any other questions.
Speaker Change: On your right hand side first row.
Speaker Change: So you'll see more from TV Tokyo.
Speaker Change: So may be a bit but he done done from your explanation Stargate project Eagle Musk.
Speaker Change: Saying that you cannot raise such a huge amount of money and do you have any response to that do you have any message to them.
Speaker Change: And if.
Speaker Change: So there may be a debt financing and you said that the the all our participation is just a part of it but if you may have difficulty raising from the other members.
Speaker Change: And because most of that has made a commitment to a Trump administration, how much risk would you be willing to take.
Speaker Change: $100 billion.
Speaker Change: How are you going to make a commitment in maximum amount wise.
Yeah.
Speaker Change: First.
Speaker Change: I saw the you saw either masks are.
Speaker Change: Comment.
Speaker Change: And.
Speaker Change: I don't believe that any emotional responses to make any good results, though I, just wait and see how it goes.
Speaker Change: We have a long history of about dressing project financing and then we have a lot of experiments experiment is so maybe we can you can wait and see for that.
Speaker Change: And for your latter half of the question.
Speaker Change: Having stargates project start.
Speaker Change: You may face difficult moment for debt financing, but if we have facing we've hasty a difficult time for debt financing, we should slow down or speed up the projects probably that would be the way because these type of the product may be very much.
Speaker Change: Acceptable for the debt financing market and if it's really faced a difficult D, meaning that the financial market itself, maybe in difficult situations. So that we shouldn't make into much stretch.
Speaker Change: And Mr. Elon Musk mentioned about the so they said they did bid.
Speaker Change: And I believe that the potential needs to just wait and see how it goes but Softbank group you already some ultimate site.
Speaker Change: More specifically.
Speaker Change: We are partnering with open AI for this business in for this joint venture no change about that.
Speaker Change: And we are not having any conflicts or any anythings reads. Mr. Elon Musk. So that's just playing a relationship.
Speaker Change: In deep sisk successfully developing the very reasonable price of the eye and you said that the competition is welcome but for the long term our vision is that going to be negative impact.
Speaker Change: On your strategy.
Speaker Change: Yeah.
Speaker Change: Deep seek.
Speaker Change: It's recently received draw the attention bye everybody.
Speaker Change: So it's quite recent and we need to see how they're going to be bothered or how's that going to be a body that that's something that I would like to take some time to see a competition is always there anyway.
Speaker Change: Some out demand was commenting that the hunting of good service available in the market is good things for the industry important thing is we just pursue the bitter sorry before that market I think that's very well said.
Speaker Change: Yes.
Speaker Change: Thank you any more questions from the floor.
Speaker Change: Osama from Nicky business.
Osama: Question about target project more particularly about our power electricity you mentioned that the nuclear fusion is not validated technology.
Osama: But I think a realistic solution for now could be utilized nuclear plant what do you think.
Osama: Yeah.
Speaker Change: I think nuclear power is a little or very Laura in a priority in terms of options or you are looking at renewable energy instead, yes.
Speaker Change: So as a softbank energy, we have been working on renewable energies, mainly and going forward.
Speaker Change: Yeah.
Speaker Change: Renewable energy should it be the first to be leveraged.
Speaker Change: Going for them.
Speaker Change: Second question.
Speaker Change: About the Crystal intelligence.
Speaker Change: The press conference.
Speaker Change: You mentioned that one company and one industry as a start.
Speaker Change: And I Wonder since then how many inquiries or requests from other companies.
Speaker Change: Yeah.
Speaker Change: We are checking and we're not ready to disclose how many.
Speaker Change: Companies are approaching to us.
Speaker Change: And then believe that Softbank Corp will make an announcement when time comes any other question from before.
Speaker Change: Yeah.
Speaker Change: Then that's all from the questions from the floor and now we would like to go onto the Christian from the zoom.
Speaker Change: To avoid any queen.
Speaker Change: Please.
Speaker Change: Disconnect any live streaming.
Speaker Change: If you are watching.
Speaker Change: This in Japanese then please make your question in Japanese.
Speaker Change: Okay.
Speaker Change: Now we would like to take question from the Mr. Sato from Nikkei Asia.
Speaker Change: Yeah.
Sato: Yes. This is speaking Sato speaking from Nick Asia can you hear me Okay. Yes. Thank you.
Speaker Change: My first question is about Stargate.
Speaker Change: In this I believe that the main part is investment in data center and as far as I understand looking at the current growth of the data center.
Speaker Change: This is mainly for the.
Speaker Change: Learning for the golf.
Speaker Change: And the target data center, maybe aiming for inferences.
Speaker Change: And.
Speaker Change: Are you going to put the crews so intelligence onto it or is it Chuck GPT, which what product are you going to sell based on the thug age.
Speaker Change: Yeah.
Infrastructure use a four star gate.
Speaker Change: He is going to be open to AI.
Speaker Change: So they.
Speaker Change: You'll be able to enhance the speed of development.
Speaker Change:
Speaker Change: They are needing a huge computing power and this is a project for that.
Speaker Change: And as I mentioned earlier, there will be.
Speaker Change: Three portion.
Speaker Change: And the biggest one.
Speaker Change: It would be.
Speaker Change: System of its ship in data center that would be probably the most expensive part on top of that.
Speaker Change: We need the.
Speaker Change: Box for that which is data center.
Speaker Change: And we need the power to run this data center. So all combined our we call it as a Stargate project. So user is going to be opening.
Speaker Change: And they will be utilizing this infrastructure to develop the services and products.
Speaker Change: So is it mainly used by open yeah as of now yes.
Speaker Change: Understood. Thank you very much my second question is about.
Speaker Change: Is making a very steady progress including share price.
Speaker Change: And to further enhance the additional buddy.
Speaker Change: You may.
Speaker Change: We won't do.
Speaker Change: Contribute to more air data into our Gpus. So that world do you may be well you may want to extend your business. So what is your strategy for the and Softbank group is very much now close to opening I and is there any synergy between Europe, where in Canada are making.
Speaker Change: Contributions to that Jason.
Speaker Change: Hello.
Speaker Change: Certainly there is opportunity overtime I would say right now initially with Stargate the biggest opportunity for arm is we are going to be the CPU of choice.
Speaker Change: So when you look at the.
Speaker Change: Technology partners that is going to be our primary contribution.
Speaker Change: And when you.
Do the math on $500 billion of investment that's going to be millions of.
Speaker Change: Of Gpus Gpus prepared to CPU, so thats, a pretty significant near term opportunity in terms of ability to get into Gpus.
Speaker Change: That's certainly a possibility, but certainly nothing that we've actually disclosed.
Speaker Change: Our intention is about at this time.
Speaker Change: Yeah.
Speaker Change: Any preclinical synergies with open die.
Speaker Change: Right now I believe you just mentioned of a business opportunity about any synergies taking technological synergies with open there.
Speaker Change: Yeah, so well on the <unk>.
Speaker Change: Crystal project.
Speaker Change: Crystal intelligence.
Speaker Change: We're providing cloud AI, which is a library that allows developers to be able to develop a very very quickly.
Speaker Change: In terms of ultimately what some of the NDA.
Speaker Change: Applications could be.
That is actually certainly something that could benefit arm significantly when you think about influence the majority of inference actually happens on the edge that happens on smartphones on Pcs in cars robots et cetera.
Speaker Change: So the opportunity spa.
Speaker Change: Specifically.
Speaker Change: Hi.
Speaker Change: Is to try to push as much of the inference to the edge and because arm is.
Speaker Change: Most ubiquitous.
Speaker Change: CPU platform.
Speaker Change: And we believe most of the edge inference.
Speaker Change: Typically a CPU.
Speaker Change: Workload.
Speaker Change: Because these are mostly devices that are power constrained in many of them are on battery.
Speaker Change: As a result of them rely on the CPU.
Speaker Change: And so that's certainly something that will benefit us. So yes. There are many different synergies that we're working on and I would say stay tuned for.
Speaker Change: What some of those different applications will be.
Speaker Change: Thank you very much.
Next question from the Chin and he stopped me how she from NHK.
Speaker Change: Again.
Speaker Change: My question is why open AI.
Speaker Change: You made initial investments following the investment and a new business or partnership.
Speaker Change: So you mentioned that you should look at the monthly web visits there are a lot of AI players in the world.
Speaker Change: In order to deliver a S I N a G I.
Speaker Change: Do you think that to open a I asked the core first.
Speaker Change: To realization of a G. I N S. I S compared to other AI players got us on what do you think.
Speaker Change: Yes.
Speaker Change: I believe that are you know looking at the chart once again here.
Speaker Change: So I think it.
Speaker Change: Gonna be very difficult for other competitors to catch up it takes time.
Speaker Change: And open a I S that much welcome and well accepted it and who should be partner, whether theres no doubt open AI.
Speaker Change: Thank you.
Speaker Change: Thank you.
This concludes the Softbank I'm sorry. This concludes the question and answer session.
Speaker Change: You're very much Softbank Group Corp earnings result announcement for nine month period ended December 31st in 'twenty 'twenty. Four is now concluded. Thank you for your attention.
Speaker Change: The video footage of this meeting will be distributed on demand from our corporate website.
Speaker Change: Thank you once again for joining of Softbank Group Corp. Earnings result announcement for nine months period ended at December 31st 2024.
Speaker Change: So, but I missed that.
Speaker Change: Yeah.