Japan's SoftBank Group is optimistic about new AI investments despite recent market volatility. The company reported a narrowed net loss of 174.3 billion Japanese yen (approximately $1.2 billion) for the quarter ending June 30, a significant improvement from a loss of 477.6 billion yen during the same period last year. Additionally, SoftBank's net asset value reached a record high of 35.3 trillion yen.

The Vision Fund, SoftBank's investment arm, experienced a turnaround with a 1.9 billion yen gain, contrasting sharply with a 57.5 billion yen loss in the previous quarter. This positive shift is attributed to the rising valuations of portfolio companies like ByteDance and Coupang.

However, SoftBank faced challenges recently, suffering its largest single-day loss since 1998, with a $15 billion drop in value. This decline was triggered by a broad stock sell-off in Japan following the central bank's decision to raise its benchmark interest rate to 0.25%, the highest level since 2008. The share price of chipmaker Arm, which constitutes over half of SoftBank's asset value, also fell significantly.

In response to shareholder pressure, including from activist investor Elliott Investment Management, SoftBank announced plans to buy back up to 500 billion yen of its shares to support its stock price. The firm has been divesting or writing down parts of its publicly listed portfolio but is now actively seeking new AI-related investments as the Vision Funds resume activity.

During the quarter ending June 30, SoftBank made three investments through its Vision Funds, including funding for Israeli cybersecurity startup Wiz and New York-based market intelligence firm AlphaSense. So far this year, the AI and machine learning sector has attracted $65.6 billion in investments, surpassing three-quarters of last year's total deal value.

Last quarter, SoftBank committed $5 billion for strategic investments, focusing on logistics, robotics, and autonomous driving. In June, the company launched a joint venture with healthcare firm Tempus AI to develop an AI-enabled diagnostic platform, following a $200 million investment in Tempus' Series G round in April. Additionally, SoftBank acquired UK chipmaker Graphcore as part of its AI strategy.

Overall, despite recent setbacks, SoftBank is positioning itself to capitalize on the growing AI market, indicating a strong commitment to innovation and investment in this sector.