The global race for Artificial Intelligence dominance is intensifying, and SoftBank Group Corp. (OTC: SFTBY), long known for its ambitious tech investments and sometimes volatile swings, is making a definitive power move. Recent reports from Nikkei Asia confirm that SoftBank has significantly enhanced its AI development infrastructure, launching a new computing platform on December 22, 2025, equipped with 1,244 advanced Graphics Processing Units (GPUs). This upgrade boosts its total operational GPU count to over 11,000, increasing its computing power by a substantial 20%. This isn’t just an incremental improvement; it’s a strategic declaration of intent to become a major player in generative AI and Large Language Model (LLM) development.
For U.S. investors, SoftBank’s American Depository Receipts (ADRs), trading under SFTBY, present a fascinating case. Historically overshadowed by its massive, but recently less influential, stake in Alibaba, SoftBank is now forging its own AI-centric destiny. At approximately $28.90 (as of late December 2025), its valuation appears to be deeply discounted, failing to fully capture the potential of its aggressive AI infrastructure build-out and its strategically diversified portfolio of next-generation tech companies. This makes SoftBank a compelling “Buy” for those seeking exposure to the cutting edge of AI and long-term capital appreciation.
The AI Infrastructure Bet: A Foundation for Future Growth
SoftBank’s substantial investment in GPU infrastructure is a critical step towards becoming a self-sufficient AI powerhouse. Owning and operating over 11,000 GPUs, particularly advanced ones, provides several key advantages:
- Reduced Dependency: Less reliance on external cloud providers for compute, leading to cost efficiencies and greater control over proprietary AI development.
- Strategic Resource: GPUs are the “oil” of the AI economy. SoftBank is effectively securing its own critical resource in a highly competitive market where GPU supply remains tight.
- Accelerated Innovation: Enhanced compute power directly translates to faster training times for LLMs and more complex AI model development, accelerating SoftBank’s own AI initiatives and those of its portfolio companies.
This move is a strong indicator that SoftBank is serious about its “AI Revolution” vision, moving beyond just investing in AI companies to actively building the foundational infrastructure for its own AI ecosystem.
Valuation: De-Risking and Unlocking Value Beyond Alibaba
SoftBank’s valuation has long been complicated by its massive stake in Alibaba (BABA), which at one point constituted the majority of its market value. However, SoftBank has significantly de-risked this exposure by gradually divesting much of its BABA stake. While it still holds some BABA shares, the narrative is shifting.
Currently, SoftBank’s market capitalization stands at approximately $83 billion. Its valuation is often measured by its “Net Asset Value” (NAV)—the sum of its holdings minus its debt. Analysts estimate SoftBank’s NAV to be significantly higher than its current market cap, often in the range of $120 billion to $150 billion, implying a substantial “conglomerate discount” of 30% to 45%. This discount suggests that the market is not fully appreciating the value of its diverse portfolio, which includes:
- Arm Holdings (NASDAQ: ARM): A foundational semiconductor IP company, crucial for the future of AI and edge computing, in which SoftBank maintains a significant stake. Arm’s strong post-IPO performance and its strategic importance in the AI era are significant tailwinds.
- Vision Funds: While past Vision Fund investments had mixed results, the current funds are more focused, with strategic bets on AI, robotics, and other transformative technologies. SoftBank is now prioritizing capital discipline and fostering synergies within its portfolio.
- Domestic Holdings: Including its strong telecom business, SoftBank Corp. (TSE: 9434), which provides stable cash flow and a platform for AI integration within Japan.
| Key Metric (Fiscal Year 2025 Est.) | Value | Implication |
| Current Stock Price (SFTBY) | $28.90 | Significant Discount to NAV |
| Total GPUs (Operational) | >11,000 | Accelerated AI Development |
| Arm Holdings Value (Current) | ~$75 Billion (SoftBank Stake Est.) | Strong Core Asset |
| Net Asset Value (NAV) Discount | 30% – 45% | Undervalued Portfolio |
Investment Verdict: A Strategic Bet on the AI Future
The market is still primarily associating SoftBank with its past Alibaba-centric identity, rather than its future as a proactive AI infrastructure builder and investor. The recent GPU upgrade is a tangible demonstration of CEO Masayoshi Son’s renewed focus on directly building and leveraging AI capabilities.
For investors seeking diversified exposure to the burgeoning AI sector, without having to pick individual AI startups, SoftBank offers a unique proposition. Its ownership of a significant stake in Arm, combined with its substantial internal AI compute power and its strategic investments across the AI ecosystem, makes it a powerful, albeit complex, play. The current “conglomerate discount” and the growing clarity around its AI strategy present a compelling opportunity for long-term investors.
Recommendation: Buy. 12-Month Target: $40.00.