What's going on?

SoftBank was looking pretty vulnerable last quarter, reporting on Thursday that its Vision Funds were in the red once again.

What does this mean?

SoftBank�s investors had every reason to be hopeful. The firm�s Vision Fund business oversees the biggest tech-focused investment funds in the world ��and with tech valuations on the rebound, they were probably counting on the rising tide to raise the firm�s leaky boat. No dice, though: some big investments did jump (like South Korean e-commerce company Coupang), but ill-starred private investments still clipped its wings. See, SoftBank marked down the value of its private holdings � the bulk of its investments � by about $3.9 billion, overshadowing its public holdings� $1.9 billion gain. The resulting �accolade� was the corporate equivalent of a dunce�s cap: a record loss for the whole year, after a fifth straight quarter in the red for those once high-flying funds.

Why should I care?

For markets: Still just window shopping.�
SoftBank needs to be careful it�s got the cash to cover debts and other expenses. And while auctioning off parts of its Alibaba stake has helped so far, the firm seems to be itching to strike a bolder, less defensive stance now � and that�s going to require deeper pockets. Taking its chip-designing titan ARM public will help raise some funds � but right now it�s at the mercy of the flailing markets. The upshot: banks are touting a super-wide valuation range for ARM, anywhere between $30 and $70 billion.�

The bigger picture: Boarding the AI train.
SoftBank�s hoping to splash that cash on AI first and foremost. And that�s no wonder: the technology�s seeping into sectors left, right, and center, from aiding drug discoveries to improving educational offerings. But given the hype � and the fact SoftBank�s not exactly early to the party � it�ll have to work extra hard to sort the wheat from the chaff.