SoftBank Group Corp. ($9984)

[Interpreted] Thank you very much for waiting, everyone. Now we would like to start the SoftBank Group Corp. Earnings Results Announcement for Fiscal Year Ended March 31, 2026. First of all, I would like to introduce today's participants. From left, we have Yoshimitsu Goto, Board Director and CFO; Kazuko Kimiwada, Corporate Officer, Senior Vice President and CAO; Navneet Govil, Executive Partner and CFO, SB Investment Advisors and SB Global Advisers; Jason Child, Executive Vice President and CFO, Arm. Today's announcement is live broadcast by Internet. Now I'd like to invite Yoshimitsu Goto to present you the earnings results and business overview.

[Interpreted] Thank you very much for joining our earnings announcement today during your busy schedule. So I would like to update you with our full year results. When we announced the third quarter announcement, I remain seated and make a presentation. I still have some -- in a recovery process for my knee, so let me stay seated for the presentation. Thank you very much for your understanding. For this year, Masa, together with us, actually made every effort, and I believe we were able to make quite good results and outcome. Market and environment, which you all know, that AI became even bigger buzzword, making influence to the variety of places and segments in the industry, to see 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 taken place here and there. From the SoftBank 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 utilizing 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 been -- has not been seen in the past. In our vision, based on all those circumstances, we aim to become the #1 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 4 major pillars when it comes to ASI: AI model, AI chip, physical AI and AI infrastructure. And here, I would like to share how we've been developing in these areas, especially, I would like to highlight those 2, 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 a 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 investments that we committed, that's going to lead us to $64.6 billion, which should be nearly JPY 10 trillion 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 we made was to announce first in-house CPU chip recently. Also, we have completed the acquisition of Ampere, which I would like to touch this on later pages. And also, we have Jason, CFO of 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. [ Pippa ], you may recall, the humanoid robots that we started with. So physical AI section is -- 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 the coming few months, we're expecting that we will be able to close this condition 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 is -- this entity is leading our main role. And also, we announced the major Japan U.S. public private project, which is the port technology campus which is a symbolic project for this AI infrastructure segment. Not only this project, but we also are looking at the development of further data center sites led by -- mainly by SB Energy. And 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, JPY 5 trillion level in net income. In this net income, as far as we understand, we believe this is highest ever profit in Japanese corporate history. From the net income highest ever back in 2020, we achieved JPY 4.9 trillion. That was the highest. And 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 value. So from the -- our assets held, this net debt and here, we are looking at JPY 40.1 trillion for the net asset value for this quarter. Latest number pro forma basis, actually, as of this morning, on an estimated basis, JPY 47.7 trillion, 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 all segments, we were able to make a significant growth across all profit measures. As a key performance indicator, net asset value as of the end of March this year, JPY 40.1 trillion, and the latest number pro forma basis, above JPY 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-end, actually making even improvement even after the bigger investments that we have made. And the pro forma base latest number, I will say 15-ish percent. But the balance sheet moves around, so this is just a 4-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 2-year equivalent of the bond redemption and actually discovers even more than that. And as a result, it comes to JPY 3.5 trillion for the cash position as of the end of March. Now let me touch upon major contributors to the financial results. First, Arm. Again, they announced a first in-house chip. There was some rumor in the past, but officially announced in March, this first in-house chip. And also they had a record high market cap. Since listing, their market value was JPY 52 billion. It's been growing for over 4x over the last -- less than 3 years. In terms of revenue, they have been increasing revenue year-on-year and FY 2025 in Japan calendar, they recorded JPY 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 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 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 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 a source of the [ fact ]. 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 product 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. 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. [Presentation]

[Interpreted] That's why they decided to offer most efficient agentic CPU in the world or Arm AGI CPU. They developed ARM AGI CPU with Meta, and there are launch partners supporting them, including OpenAI. Those are major brand 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 FY '25 was JPY 4.9 billion, but in 2030 or in the 5 years, they are expecting to hit 5x bigger revenue. And also EPS, they expect 5x bigger EPS over the next 5 years. So Arm is ready to hit those numbers. And from a profitability perspective, they have -- already have an IP business, which has high margin. And with this chip manufacturing, Arm, I think, is going to draw a new growth story going forward. Now let us go into the OpenAI slides. There are 3 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 the 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 3x, 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 [ valuation ] movement. But initial investment in OpenAI back in September 2024. But 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. This February in 2026, we made a follow-on investment commitment. In that moment, valuation was $730 billion. So since the initial investment, it took about 2.5 years and actually made about 5x of the valuation. I assume you are also a good user of ChatGPT and the service provided by OpenAI that you've been experiencing. And I think that you can understand why they are making such a great growth in valuation. And also, this is the investment amount in OpenAI, 2.2 billion in fiscal 2024. Last year, $32.4 billion, and the 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 the growth of the ChatGPT service. 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 focus on the retail or the consumer market, so you've been seeing these numbers. But actually, OpenAI 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. In the coding agent, as you can tell that coding is a very complicated task, and this agent execute 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 4 months and this number of users are in 10x. 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 we -- 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 there are actually faster adoption and more revenue and more cash flow. So that's how we've been seeing why the 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 in overnight. You do need a good preparation and you do need strong partners. Otherwise, you cannot really have an access to compute. In 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 will be able to create such an infrastructure and having an access to compute. And they are on -- in the process of such a development of further advantage for the company. And now on to digital 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 increment of JPY 46.2 billion. And cumulative investment gain is also becoming a positive number. And this is the actual cumulative investment gain and loss from the Vision Fund segment point of view and actually made a significant improvement, 24.2 billion incrementals for Vision Fund 1 and 21.8 billion for Vision Fund 2. So since 2020 to 2021, they made a significant increase. And after then, actually, they made a great recovery compared to at the time of the 2020. In the Vision Fund 1 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 reasons, 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 monetization for the fund as Visual Fund already finished its investment period. And for Vision Fund 2, on your right-hand side, needless to say OpenAI's contribution is large. These numbers, as OpenAI's still a 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 2 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 Vision Fund 1 and Vision Fund 2, actually making a good growth. For Vision Fund 1, on the left-hand side, 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 Vision Fund is shown on this slide. Fiscal 2025, 7 listings has happened. It Include PayPay, which was quite a large size of the IPO, and we are very happy to have them in this list. And cumulative -- since the inception, 62 listing has been happened. I believe this is quite a good number 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 has been a big contribution from OpenAI, but also there are other contribution from -- by dense thematics. There are also quite good companies that we are looking at. PayPay. 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 the United States. I'm also a member of the Board of PayPay. 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 he's found 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 PayPay operation is actually doing pretty well as well. Number of registered users exceeded 73 million. So it's used by more than 1 in 2 people in Japan and more than 2 in 3 smartphone users in Japan. GMB, also making a very steady growth here, which exceeded JPY 19 trillion. And the payment or cashless payment market is about JPY 160 trillion size. So JPY 19 trillion GMV means actually accounts for 12%. So I believe that it's making quite a good share that the PayPay has right now. And share price, it's still early to tell because they just went public. So we do need to follow several years over. But since the IPO, they are making 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 integrity power and data center [ campus ] in port 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, SB 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. Ten gigawatt is equivalent or exceeding Metropolitan Tokyo's average power demand, a tremendous capacity. And from a 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 U.K., Japan and South Korea. So 10 giga in power and 10 gigawatt for 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 will 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 our 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 super intelligence in the future. We'd like to make this project a 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 U.S. 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 an AI data center in Milan country in Texas. The construction is underway. And capacity is 1.5 gigawatts and the tenant is an [ open AI ], which signed an agreement for over 15 years. And also, SoftBank Energy or SB Energy started from the power business. In terms of battery storage and solar, energy and combination, battery storage and solar energy, they have great past record in Nevada in U.S. Not only in the U.S. but also in Japan. Well, SoftBank [ KK ] had an announcement of the 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 and 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 a Vision Fund. With that, Robo Holdings shareholders are SoftBank with 58.7% ownership, and [ SBFC ] with a 41.3% ownership, and [ Agile Robot, SKU AI, Sotobank Robotics, AutoStore ], 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 [ Neuro ] is one of the portfolio companies in autonomous mobility sector. And in the middle is automation infrastructure 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 [ air optics ]. And in the future, humanoids will be included in this area. They have started their businesses in the respective areas with their expertise. We have invested in start-ups. But even though you call them start-ups, they have grown significantly already. From a valuation perspective in the latest around, for example, skilled AI valued at 14 billion; wave, 8.6 billion; zipline, autonomous drone technology developer value at 7.6 billion; Neuro, 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. The have a presence in over [ 50 ] countries where there are 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 3 sites. And from R&D to manufacturing and sales and service, they have an end-to-end capability. Traditionally, we often invest in smaller start-ups, 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 an 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 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. In the ABB Robotics, [ $5.4 ] billion. In end of December, DigitalBridge condition 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 plan. 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 -- as a takeout wise, as you look at the size of our net asset value, somewhere close to JPY 48 trillion, 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 take-out 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 2-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 I always like to make sure that our company is safe and sound. And in the other way to express that, that this is the financial policy, which rolls 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 the best relationship with our stakeholders, including shareholders, bondholders and others. And for them, we would like to leave 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 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 of 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 4 pillars are the main focus for us, and not only this, but at the same time, we would like to do many things 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'll be able to seek for maximizing our enterprise value with safe and sound financial base. That's our role here. So every quarter that help will be able to make such a safe and sound financial report updated to you. That is all from me. Thank you.

[Interpreted] [Operator Instructions]. First, from the floor. [indiscernible], newspaper.

[Interpreted] So OpenAI, is that 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 company similar to OpenAI. Or you would rather focus solely on OpenAI?

[Interpreted] Thank you for your question. We are open to any possibility. So we have a strong relationship with OpenAI to move Gen AI 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 a lot of players competing each other 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.

[Interpreted] Second question is about Stargate. Could you give us an update on Stargate? You talked about Texas in your presentation. And in Texas and Ohio -- in Ohio, I believe that this is for making equipment for data centers. And 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?

[Interpreted] Yes, this [ Milam ] 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 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 the you accordingly.

[Interpreted] If I ask you a follow-up question. Like one in part, which is outside the Stargate project scope. But why you work on Stargate. But also outside Stargate scope, do you have any plans to work on data centers in different locations?

[Interpreted] What definition of Stargate, I think, is rather flexibly considered, if I may put into that way.

[Interpreted] The next question on the front on the right. [ Suda ] from Nikkei Newspaper.

[Interpreted] 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?

[Interpreted] From the business 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 comment about that.

[Interpreted] 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 numbers -- latest number? And what is your outlook for the loan to value?

[Interpreted] As of the end of March, 17% is our loan to value that we have, which I shared with you earlier slide. Latest, I assume it's about 15-ish percent. But there are many things that 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 JPY 8 trillion or so. So that's another advantage in terms of the loan to value. So net asset value, I would say JPY 48 trillion level, 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.

[Interpreted] Any other questions from the floor? [ Asama ] from Nikkei Business.

[Interpreted] I have 2 questions. First, about finance. At the moment, you plan to invest 38.5 billion for the year. With regards to financing, I wonder, are there options like margin loan or bond issuance? But I wonder, margin loan using OpenAI shares, is that something that you would consider?

[Interpreted] Yes, financing with OpenAI's 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 the market environment and timing, we will select options accordingly. OpenAI value is about JPY 10 trillion of assets, and I think we should be able to leverage that very well.

[Interpreted] The second question is, I think about 3 months ago when you made an announcement of financial results last time, you talked a little bit about what a lot of people are talking about concerns of your super 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 an important thing is to have a mid 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.

[Interpreted] That's true to our portfolio companies and that's true to data centers. So there are a lot of opinions on those data centers or portfolio companies. And in a mid- and long-term run, do we really need them? And if you look at data center, for example, definitely, obviously, demand will exceed 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. And 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, like a 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 a business perspective, which we believe is needed, and project order should have an eyes and capability to structure project finance.

[Interpreted] Any other questions, please?

[Interpreted] My name is [ Koka Nisaki ] from [ Mantri Magazine Factor ]. I would like to ask about the semiconductor. So in your presentation, Arm's revenue can be 5x in 5 years. So AI, the demand's actually expanding. That's the kind of movement we've been seeing. To secure such semiconductor, Elon Musk in United States is having a partner with Intel and trying to create the mass production, [ Terafab ], with JPY 8 trillion or so. So to secure the semiconductor, we do invest in the mass production business? Do you have any consideration over to it? What is your view on that?

[Interpreted] As a SoftBank Group semiconductor business or semiconductor segment is actually led by Arm, and we have Jason. So why don't we have Jason to answer if you have any view, please?

Yes. 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 company, specifically TSMC. The current chip that we announced just 8 weeks ago or so, that actually is committed volume 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 in the fabrication ourselves.

[Interpreted] Any other questions? Any others, please?

[Interpreted] MJ from Bloomberg. A question about your financial strategy. Bridge loan, margin loan, it looks like you're 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?

[Interpreted] 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 cost is low, so at this moment, which finance is way go forward at the moment?

[Interpreted] 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 will be 500 billion. And I won't have any financing plan to do that or if you have any view on that?

[Interpreted] From financial [indiscernible] perspective, it's too early to say. I don't have any comment to make at this moment. Thank you.

[Interpreted] Any other questions, please? Then second row from the front, please.

[Interpreted] [ Makino ] from NHK. Bit redundant from the previous question. But these days, AI news, when you look at that, Anthropic and Mythos 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?

[Interpreted] I myself is the 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 fight, Amazon, NVIDIA, they are also investing large amount. So we are not the so risk taker from a financial point of view, putting everything in OpenAI. That's not the case. Actually, there are many hyperscalers. Also acknowledging and valuing OpenAI service quality or the level of the technology, so I think that's something that you should also refer to. Mythos, Anthropic, I do understand there are such a 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 after worse. 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 company -- countries as well. So that's the direction that we should be taking.

[Interpreted] And one another question from me. So just a confirmation. Anthropic -- investment in Anthropic, do you still keep that option?

[Interpreted] That's -- I don't want to say anything for certain, but our main investments is in OpenAI.

[Interpreted] Any other questions from the floor? [ Hayako ] from [ GG News ].

[Interpreted] One question. You exceeded JPY 5 trillion for the first time at the Japanese company. What's your view? What's the impression?

[Interpreted] Well, number one, in any area, it's great. But as I keep saying, market, share prices, we don't want to be influenced in the short term by the moves. Again, we need to look at 5, 10 years ahead. And what should we do to keep this position going forward? That's something that we should more focus on.

[Interpreted] I think that's all from the question from the floor. So I would like to now take questions from Zoom. [Operator Instructions]. Nakagawa-san, TBS, please unmute and start your question.

[Interpreted] TST -- TBS TV Nakagawa. Can you hear me okay?

[Interpreted] Yes, I can hear you.

[Interpreted] So some media covered that SoftBank Group is planning to establish the company and try to have this company go public as a roles AI, -- do you -- what is this company's role? And what is the progress of this company so far?

[Interpreted] This is speculation coverage. So I don't want to make any comments about that.

[Interpreted] And next, Masuno-san from Nomura Securities.

[Interpreted] I have 2 questions. First, to Jason-san, AGI CPU. The TAM of 2030, you said over 10 billion; AMD is $120 billion. So personally, I think you could adopt $120 billion. In terms of share, AMD, in monetary value basis, 50% share and your 15% share. I think they are both true because they have different CPUs. In terms of market value, Arm is 1/3 of AMD, and AMD has also GPU, whereas you have CPU and architecture. I think it's a good combination. Then after 2030, you 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, Jason-san?

So I agree that there's a great chance to meet or exceed our $15 billion target in 5 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 billion, is it $200 billion, whatnot. AMD came out a couple of 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 of 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 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.

[Operator Instructions] Next question is to Goto-san about the data centers.

[Interpreted] [ Milam ] County is 1.2 gigawatt. And in [ Golden County ], 1 gigawatt were announced with SB Energy totaling 2.2 gigawatt, and in Ohio, 10 gigawatt. So total, I think, $600 billion or JPY 100 trillion is what I'm looking at. And the building is only 1/3, might be 30 trillion. And if equity portion is 20%, then it's about 20% of Arm's market value. So my question is, it's not a big number for you. Do you agree with me?

[Interpreted] Well, how do 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 the fixed asset or construction or chip-on system, I think in different areas, different financing structure can be possible. So it's not going to be only a one time a big payment, maybe it's going to be paced approach. So again, we want to be flexible from a timing perspective. Thank you.

[Interpreted] This concludes the Q&A session. And we would like to conclude the SoftBank Group Corp. Earnings Results Announcement for Fiscal Year Ended March 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 Results Announcement For Fiscal Year Ended March 31, 2026. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]