SoftBank Group Corp. (9984) Earnings Call Transcript

Thank you very much for waiting, everyone. Now we would like to start the SoftBank Group Corp. Earnings Results Announcement for the first quarter of the fiscal year ending March 2027. 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 CEO. Maka [ agani ], Executive Managing Partner, SP Investment at Pfizer and SB Global Advisors. And Jason Child, Executive Vice President and CFO, ARM. Today's announcement is live broadcast over the Internet. Now I would like to invite Yoshimitsu Goto to present you the earnings results and business overview.

Good afternoon, everyone. Thank you very much for your time today. I am Yoshimitsu Goto, CFO of SoftBank Group. First of all, I would like to express my deepest condolences to those who lost their lives in the recent Kumamoto earthquake. I also extend my heartfelt sympathies to everyone affected by the disaster, including those staying in evacuation shelters holding away from their homes under difficult and uncertain circumstances. At SoftBank Group, we would like to support as much as possible. So SoftBank Group, SoftBank Corp. and Ly corporation, SoftBank Hawks will donate -- and also encouraging public contributions. We will continue to support the recovery and the reconstruction effort through the services provide our group companies to help those affected regions regain their daily lives as quickly as possible. Now that I would like to go into our earnings results. Compared to March market has been dynamically moving. As you know, SoftBank Group is an investment company, we can be affected by the market investment portfolio valued by the market basically deflating to our results. As a result of the end of June, our net asset value which is the total value of our investment portfolio, less debt, this interest-bearing debt gives you a net asset value JPY 72.3 trillion. So this is a record high number. Our performance is actually described by this value. We believe that these are the most important indicator to see and value our enterprise value. This is still a rough estimate, but the pro forma basis, the latest information was net asset value is about JPY 58.3 trillion. So it is a fact that it has been declined from JPY 72.3 trillion. But actually, if you see the trend in the past 50 -- 80 is already great numbers to be achieved. So I would like to also show this with together with our history. So this is the record that we've been experiencing. And also this itself actually shows you how much potential do we have for further growth in the future. So as I mentioned, that every quarter, there are good times, bad times. But at the same time, we do not really aim to have to set about short-term fluctuation. We always look at the mid- to long term period and how we're building the base for the further growth and how they're going to be collected to the future growth. And our investment strategy is pretty much close to our business strategy. So is -- as an AI platform provider, what do we need to do? So we always kind of think backwards once we set the target and then that we would like to discuss what we need to do. Why are we addressing AI infrastructure? Because if you don't address AI infrastructure, you cannot see the enhancement or acceleration of the feat of AI model, OpenAI and other hyperscalers, those AI players that we would like to accelerate the speed of those people or those companies. And by addressing AI infrastructure, that can also accelerate the growth of ARM, for example. ARM, as you know they actually design the core and heart of the all the chip, and they have dominant market shares for that. And by having more and more chip to be shipped, then the basic business model will grow. And not only that, recently Arm has announced to also address their in-house chip with the high quality, high capable chip will be used in many AI models, AI infrastructure. And because we've been telling market that we try to become a company to change people's lifestyle. So lifestyles or the working styles to be changed, physical AI is going to be the very focused area that we pay very good attention to. This area is actually just the beginning, and there is not much -- many company making profit or we don't really know who will be the winner for the future in this area either. So that makes us even more excited to see. And each has a kind of a correlation to each other. So that is why that we address these for. So only for the quarter, but we do have some developments here, which I will be explaining in later pages. So to become real number 1 AI platform provider is something that we are trying to achieve. And that's something that the Masa is very much putting his effort into. And this is the financial highlights for the first quarter. First, JPY 1.8 trillion investment gain. So this is increased by JPY 1.3 trillion year-over-year and the net income, JPY 347 billion. Second, as I mentioned in the previous page, net asset value, JPY 72.3 trillion, highest ever compared to the past numbers. And third, for the own investment in OpenAI, we have invested JPY 20 billion in this first quarter. Towards October, we have remained as of JPY 10 billion, which is committed. And fourth, for the first quarter period, we have announced plans to develop 5 gigawatt AI data center in France, which was kind of highlights for our quarter. And now we would like to go into consolidated results. You see the numbers in each respective lines. But the investment gain actually increased dramatically compared to the previous quarter -- excuse me, the previous fiscal year. And net income is another important number, JPY 347 billion. So I will explain you the trend from the past, but something that's missing from here, which is the net asset value. So I would like to also add once again that the net asset value is also important KPI for our company. Investment gain or loss on the net income, how it has been developed. So for April to June, first quarter, JPY 1.8 trillion, mainly due to actually Intel. Last year, we've been paying attention to the semiconductor business in the United States, and we invested in Intel as a result, the first quarter it has been making quite a good increase. And also ByteDance invested by Vision Fund, the fair value increase actually has another -- it was another contributor for the investment gains for the quarter. One more important indicator from the financial point of view is, as I mentioned, net asset value, once again, end of June, JPY 72.3 trillion compared to a quarter before that has increased dramatically. And also on loan to value to measure your safetiness. This is a net debt over equity value of holdings. At the end of June, 13% is also a very safe level or even too safe, we may need to invest more probably. That's how we believe being kind of tightened the loan-to-value. And cash position, JPY 3.5 trillion back in the March end and has decreased a little bit, JPY 2.3 trillion, but because this is the redemptions for the maturity of the bonds and also for the some investment activities. But still, it does maintain the necessary cash positions based on the financial policy we have. Net asset value quarterly basis. As you can see, highest ever, JPY 72.3 trillion loan-to-value. If you look at the trend from the past, as a financial policy, we have 25% as a one threshold. But at the same time, I would also like to emphasize 25% itself is already safe enough, but we make it even safer of our business itself. Because our company has quite a large investment from our own balance sheet, which is quite rare and unique compared to the other global investment company. So I believe this is significant for us to share with you the safetiness of our business using loan to value. And why 25% you may ask is because we do need to see some kind of threshold. How -- where do you believe that the safety level are there? Of course, the financial people may understand well about the loan to value, how much will be the safe level. But for the public to understand even that the market can go volatile, but still as long as we keep this level, we will be able to keep a company as a safe level. Cash position. A little bit of decrease I mentioned earlier. But in our financial policy, our criteria is the maintaining a cash position about 2 years' worth of bond redemption. In over 2 years, we are expecting JPY 1.5 trillion for the bond redemption, so that our cash position covers more than enough. Now let me talk about ARM, one of the most important companies to us. Revenue in the first quarter, they hit the highest record, posting JPY 1.3 billion. It increased 22% year-on-year. amazing results. We diluted earnings per share. They hit the record high at the first quarter. It increased 29% year-on-year, again, the great performance. Guidance, for view, they have a range, but the midpoint is JPY 1.38 billion for the second quarter. Guidance for EPS for 7 -- midpoint. Compared to last consensus as of ARM's earnings announcement. Both are higher. So I think that's really convincing and something that you agree on looking at Arm's performance. . On the CPU cores for the data centers are growing, as you know, it's been growing since 2019. many hyperscalers has adopted Arm-based CPU, Cobalt and others and Google, especially, it grew significantly in the last 12 months, which should have a positive impact on ARM's future going forward. Again, many tech companies have adopted Arm's products. IPO-based CPU chips have been used by about 50% of leading hyperscalers like you can see on the slide, like Graviton, Axion, Cobalt and Grace. They help us to raise Arm's brand value and recognition. As you know, Arm keep providing chip design since the beginning, but also ARM has announced that they would develop their own product by themselves, which is a huge jump from ARM's perspective. In fact, this CPU compared to x86, 1 gigawatt of data center capacity, it helped save up to JPY 10 billion CapEx. Very efficient CPU and as agentic AI is deployed further, the market of CPUs for data center should grow significantly. And Arm AGI CPU attracts more demand than what we had expected and what ARM had expected, which is all positive. And we have 2 more companies joined as launch partners of ARM AGI CPU, Oracle and [ BARDA ], which is great. Well, in fact, Agentic AI goes into not only cloud but also in varieties of devices. And NVIDIA announced a chip for PCs with agentic functionality, and this has Arm-based Grace CPUs and OpenAI. And by the way, if you have any questions about Arm, you can ask Jason later. Now OpenAI. As we mentioned in the last earnings result announcement, we made a commitment in March. And that commitment was to invest JPY 30 billion this year. And of them, JPY 20 billion were executed. And remaining JPY 10 billion investment will bring total investment to JPY 64.6 billion and own to 13%. OpenAI's GPT space to offer varieties of products for consumers, as you are familiar with ChatGPT is there. And for business users, especially for the engineers, Codex is offered, we focus on and they focus on selling on Codex. On top of that, ChatGPT work was released recently. So AI model evolves and the product performance goes up accordingly. Into '22, GPT 3.5 was released as what we know as ChatGPT and GPT have been adding more functionality and capabilities more than you may imagine. GPT-4 has an AI capability that solves a problem, not just answers questions. It was released in March 2023, 3 years ago. And GPT-5 has agentic capability. So it is AI that performs tasks. . So compared to 3.5 to 4, it is a significant evolution. And the latest one, GPT-5.6, its functionality is even enhanced. So it is an AI that goes and gets work done. So AI does work autonomously, which is unique. About the GPT-5.6, which is the latest revision. So from expert perspective, how the 5.6 is viewed. So there was an evaluation methodology developed by UC Berkeley and others. According to their evaluation, OpenAI yielded highest performance in terms of a score. And if you take a look at on the right-hand side, compared to other AI, OpenAI's 5.6 saw cost far less. So high-performing model with lower cost is how the GPT-5.6 is seen by professionals. I'm not an engineer at all. I am a finance guy so I cannot answer to any professional or expert questions, but this is as much as I can tell you generally. Codex for software engineers has been growing significantly. In December 2025, monthly -- excuse me, weekly active users were 0.4 million. And in July, 10 million, it grew 24x in just 7 months. On top of Codex, ChatGPT Work was released for business persons. So combined Codex and ChatGPT Work, again, weekly active users grew 25x in 7 months. So OpenAI is kind of a late comer in terms of enterprise market because they started off where the retail users a retail market. But the OpenAI has advantage in terms of their brand recognition among consumer market. So going forward, the enterprise market is a key focus so that they can grow more in the enterprise market. Now let me talk about parts of catching -- as a service. In July, last month, actually, SBI Japan launched joint venture between SoftBank and OpenAI announced and launched PaaS as a cybersecurity solution. We are a holding company, and we are a strategic investment holding company. So from our perspective, our job is to make sure that our portfolio company work together so that we can help them to raise their corporate value. We want to help them to do that. So again, this PaaS launch by our portfolio companies are a great example. This PaaS will be rolled out to 3,000 companies in Japan. So they start from vulnerability assessment. And once vulnerabilities are identified, they run the program to apply patches. From end to end, they offer this PaaS service to those critical infrastructure companies in Japan, 3,000 that they are. And later we want to even offer code modernization. Now let me go into AI infrastructure. AI data center portfolio, we are mainly leading right now is in the United States. And also, we have a project in France as well, which is announced this quarter. For United States, Ohio and Texas state in France, auto France, which is Northern France area is actually the place we are addressing our project. In France, we announced a plan to develop 5-gigawatt AI data center in France. So in June 2026, there was a chosen France Summit. And there in front was President Macron. We have announced the plan for the development of 5 gigawatt. For the first phase, EUR 45 billion investment to deliver 3.1 gigawatt of AI data center capacity in Northern France by 2031. More specifically, Dunkirk, Bouchain, Bosquel. Those are the first site that we will be addressing. First AI data center is actually designated as fast-track project by French government. So with that, we have secured 1 gigawatt of power and also accelerated grid connection is actually addressed. In United States, if we try to address the data center project or if we try to do in Japan because data center concern huge volume of power. So you also need to build power generation plant at the same time, which means you need to double the size of CapEx. But in France compared to the rest of the world, they have a very unique advantage, which is that they are actually exporting country of the power so that they have actually -- they can provide the power to the data center use without causing any impact to the French citizens, but still, they will be able to allocate some power to data center, meaning addressing data center project approach is different compared to the other world, and they do have a kind of a good base to proceed the data center project from that reason. And also in France, we've been building supply chain for AI data center equipment in abolishing local supply chain for power modules in Dunkirk to accelerate data center development together with Schneider. So SoftBank Group and Schneider are going to provide -- set the supply chain for the power module, and we will be able to accelerate data center development. In United States, a ports technology campus, Piketon, Ohio, which we announced a 10-gigawatt large-scale data center project. This is quite a huge project. We are currently in discussion towards execution of this agreement, and we are coming to the final stage of such discussion. And at the same time, we are expecting construction, it's starting in 2026. One another project that we've been working on in the United States, where -- in Milam County, Texas, AI data center and already having this agreement placed with OpenAI and building one construction on track for the delivery. To proceed our data center project, we have a group company, which plays a very important role, which is called SB Energy, actually established back in 2019. Originally, they've been addressing many power projects in the United States. And they've been expanding their business domain too for data center because power in the data center in the integrated way is going to be the benefit and advantage and we have a very experienced management to lead the business of SB Energy. . So cumulative project capital raised, which is almost the total number of project amount by SoftBank Energy is about $19 billion. And power generation and storage capacity and our operations that are under construction is about 5 gigawatt. So they do have a quite size of the business and the presence in the United States. In May this year, they have already filed the confidential filing for the Form S-1. And we are very much looking forward to see further development in the future. In NEO Cloud, service, which was also presented at SoftBank Corp's earnings results announcement few days ago. So our domestic mobile operator in its Softbank Group holding company together with them, we start launching the project for the Neo cloud service in the United States. So this new Neo cloud business will be providing AI compute via the cloud. So power AI data centers will provided by SB Energy is bringing into the special purpose company and the service will be provided as a cloud service studio offtakers. We believe this is going to be also another important business model for the future. Now into Vision Fund. Investment gain or loss, this is since the inception of the business. It's going well and actually adding some more investment gain as of the end of June, JPY 47 billion. This is a breakdown of the gain or loss on investments for the first quarter period. Vision Fund 1 on your left-hand side, mainly due to the increase in the fair value of write-downs, this led to divisional fund -- increased gain on investments by JPY 2.3 billion. And on your right-hand side, Vision Fund 2 in Lat Am and others, a little bit of a negative. This is because of the PayPay which went public this spring. And the share price of PayPay, a little bit weak this quarter. Actually, that was the main reason then PayPay is actually recovering its share price. And for the future, we are still very excited about this business, too. Cumulative investment return. Including the exited companies, we're showing the total of the investment return. And on your left, Vision Fund 1, JPY 114 billion cumulative investment return. So exceeding largely compared to cumulative investment cost. So green portion is the exit case. So actually, that we have already exited $73 billion. Also, the investment monetization. So those green bars that we have just mentioned in the previous page. In every quarter, especially in the recent quarters, about JPY 1.5 billion in average has been monetized and made its return. In the past 2 years, main divestments were on your right-hand side, Coupang, Roivant, Food Truck Alliance, DoorDash and so on. So those actually went public successfully as a result that we have addressed the monetization of those, of course, not only the invested portfolio, but the private companies. There are many ways to exit not only sales. Sometimes that you can sell in the market for the public share. But as a private shares, you can have a transaction or M&A can be another option too. So there are many ways to go exit of the portfolio, and we would like to execute the good options available. And we have a new CFO for the Vision Fund, [ Magni ], especially have an expertise in the monetization so far. Public listing and pipelines. Late-stage portfolio on your right-hand side of total fair value because of the follow-on investment in OpenAI, it went to $133 billion. So compared to March end, late-stage portfolio total fair value itself increased by JPY 15 billion. And let me pick up some of the portfolio companies, which are in the late stage. Prism, formally known as OYO, you may have seen in some Japanese market as well. They have been operates a global hospitality platform. So they have rebranded under the name of Prism and was already made a filing for public offering. And they support accommodation partners with demand generation, dynamic pricing, revenue management and day-to-day operations. They themselves are managing actually the hotels, but now that they are very much focused on the platform. So they have a clear vision and direction of the business models now. They are also a good promising company. And the clock is the short -- they offer an online platform for travelers to discover book tours -- and book tours, activities, transportation, hotels and more around the world and that we have invested in 2019, first quarter, and that the business model itself has been making a good momentum, and we are also excited about this company. And one note on the PayPay movements. So we would like to use some slides to share with you. So this was announced in June 4 this year, which was to make T&D Financial Life a subsidiary of PayPay Corporation. So having discounting under the umbrella of PayPay, so that they will provide comprehensive financial service on top of what they have already. So by having a life insurance business, based on the life stage of the each users, we will be able to provide very good comprehensive services. We've been looking into this agenda. And this time, it made good results. Another one is the capital and business alliance with Seven & I Holdings. On your left, you see SoftBank Corp, domestic operator, PayPay and Sumitomo Mitsui Card JPY 100 billion each. So the ownership stake itself is about 2.13%. It's Seven & I Holdings, and we are starting the capital alliance, especially when it comes to PayPay, it is a good achievements here because there are about 20 million customers per day visiting 7-Eleven stores and 30 million transaction per day made by PayPay for utilizing the data in between so that we'll be able to utilize and see the future combinations. A number of the store wise, they have 22,000 stores in 7-Eleven and PayPay has a 75 million user base already. That can be a great value generator for each other. Now let me talk about physical AI. Commercial deployment is accelerating across the portfolio companies including companies under the umbrella of Robo holdings. Over 30 physical AI businesses are on our portfolio. I think we can group them into 3 categories. First, robotics, obviously, which should include humanoid in the future. So robotics and AI technology is one bucket. And then automation of infrastructure like factory automation that has been there for some time. And the third bucket is mobility and autonomous driving. In each sector, those portfolio companies that are only a handful of our portfolio companies should play key roles in respective area. And Masa is expecting a lot and spending a lot of time in physical AI sector. And please note, right top, ABB Robotics, we announced acquisition. And by end of this year, we should be able to finish approval process and completed acquisition. Upon completion of acquisition -- so huge operations, huge services across the globe will be integrated and it should deliver great synergies and accelerate deployment of robots. Last and not the least, a financial policy, as I keep saying, no change on financial policy, which is to maintain LTV below 25% in normal circumstances. And to maintain at least 2 years worth of bond redemptions in cash position. Making sure of that we are safe and sound. To summarize, investment amounts compared to last year 2025 and 2026, currently, we are kind of controlling the investment amount so far, but the biggest investment done so far is in OpenAI, bulk of it already executed. Total 20 -- already executed in terms of investment in OpenAI. And 10 more for OpenAI, JPY 5.4 billion for ABB Robotics and JPY 3.1 billion for DigitalBridge, which we announced M&A last year. So we committed JPY 18.5 billion. Yes, we closed our financings, one by one. First, we entered into a financing agreement using OpenAI shares. I think it's today, as we speak, JPY 10 billion of OpenAI and we arranged LBO financing, max at JPY 1.8 billion ahead of acquisition of ABB's Robotics business. So thanks to great support from globally known big banks, we're able to arrange those financing. We really appreciate your continued support. About the ratings. S&P negative for a long time, but they revised its outlook from negative to stable, which is one of the great piece of news in rating. As I have explained, we keep focusing on those 4 sectors to raise our corporate value moving forward. Again, information revolution, happiness for everyone. Thank you very much for your kind attention. And now I would like to start taking your question.

[Operator Instructions] Now we would like to take your questions from the floor. The very front person in the middle section, please.

My name is mike. I have 2 questions, please. First, after July, U.S. tech region player has been criticizing the excess investment in data center. Will you keep your amount investing in data center? Or are you going to change your direction in the investment in data center business?

Yes, thank you for your question. Data center project are one after another in the United States. I think that the Stargate project will set the fire in the market. And also, there are some markets that they may be bubble, but We do have a very clear view on demand and supply imbalance. So the supply is very much short. And that is why this project is announced, one of which I believe is a healthy situation. Without hearing computing power, technology in the service of AI can be slowed down. So I believe this is necessarily project owners leading such an investment, and we would like to be the part of it, too.

My second question is about OpenAI IPO timing, I would like to ask you. There are some media coverage talking about postponing to next year. But how do you see about the timing? And if any postponement, what kind of impact to your business.

Well, same answer back to you, actually, we are not a company going public. So I have no comment or I cannot comment on the timing. Of course, as one of the investor in the company, we are very much keen to see and expecting on IPO of OpenAI?

Next question.

My name is Mary from Diamond magazine. I have 2 questions. First, SB and Neo. So Bank Corp. is engaged. So what's the purpose or why I wonder if you want to build expertise in Neo cloud. So again, size of Neo cloud, you mentioned 10 gigawatt. And Ohio and Texas are talking about 10 gigawatts? Is it just by accident or what? So SB NEO kind of equal to Ohio or Texas and also nonrecourse financing you mentioned. And I understand that you don't want to affect your own business. So how much will it be in terms of nonrecourse financing. A lot of questions around Neo cloud. Sorry about that. .

Neo cloud business itself is led by SoftBank Corp. So details, I would encourage you to ask them directly. And you're talking about 10 gig. I think are you referring to Portsmouth project and project itself does not necessarily mean SB Neo project. As you can see on the slide, Yes, SB Neo's role is to provide computing to customers and talking about the nonrecourse role, again, this is a project, and this is just one of the typical examples of project financing. And off taker of project finance depends on the credit of offtakers. So from SB's perspective, it's a nonrecourse financing. So again, I suggest you to talk to SB also bank for more details. So 10 gigawatt is a start of nuclear service they mentioned in announcement. Of course, they want to do 10 gigawatts, but they want to build demand as they expand the business. So Neo cloud data center is based on the assumption of Texas supports those data centers. It's still being finalized, which project or how much they get involved in? Next question is about ARM. Just to clarify. So as a project, if Neo or Neo cloud is not a Portsmouth project. So it doesn't necessarily mean this business will utilize Portsmouth data center.

Again, a question is about ARM next, especially Arm chip. I'm sure that you started or launched a business of ARM made or ARM development business and from '26, '27, '28, $2 billion of demand is expected, we heard in your announcement or earning results. So how probable it is -- or are there any upside? I mean, how confident are you? How confident are you about the future demand in the next 3 years?

Jason, you may want to answer.

Yes. So with ARM AGI CPU, we did say initially that for -- it starts shipping in Q4 of this fiscal year. And then the combination of this fiscal year and next year, we said initially when we announced the product back in March, that there'd be roughly $1 billion in revenue. Last quarter, actually 2 quarters ago, we said that demand after we announced it, had already expanded to nearly $2 billion. And in this most recent quarter. So last week, we said that it's now -- we have orders for more than $2 billion. But we have not updated our guidance on what the revenue will be because we are still working through the supply chain constraints, primarily around wafer capacity. There are some other constraints as well. We have made progress on satisfying some of those constraints, but we're not ready to say exactly how much of that incremental $1 billion plus that we will be able to ship until probably another quarter or 2 as we get more clarity on both the pricing as well as the entire wafer capacity that we're going to be able to get access to. In terms of the overall demand beyond this year and next, which for us is fiscal '27, '28 and then even going into our fiscal 2019, which would be SoftBank's fiscal '28, we expect the demand to double the year after that. And that's because the order pipeline for AGI CPU continues to grow. And as you heard Goto earlier, we added a couple of very large customers this quarter. We expect to be continuing to announce new customers. So demand looks to be very much on track, possibly even ahead of what we said back at our ARM Everywhere analyst event.

Now on second front row.

Majima from Magazine fact. This year AGM, shareholders meeting. Masa was talking his 15 years here that he would like to devote and NAV net add value to JPY 1,000 trillion or there was very much impressed challenge that he announced at the shareholders' meeting this year. And that's actually the charm that Masa has. And Goto-san and Kimiwada-san, you being run along with them. And once as Masa becomes -- get older, you also get order along with him. But how did you think about what Masa said that he's going to be working even more 15 years?

Thank you very much for your question. There at the shareholders' meeting, he mentioned about 15 years, and we thought about how he expressed because we didn't expect that he's going to say in that way, but we were also happy to hear how he motivated as market cap is growing. And Masa, the founder himself and also CEO and also a leading shareholder that, that position has maintained. And how are we going to come up with a succession plan for such a company is always a question from the investors, too. And we, but at the same time, like to see Masa should show great performance even more and you can work so that we would like to support what he needs to do. And recently there were patent on the generative AI becomes #1. So 3,000 cases that the Masa has applied, he mentioned about 2, 3 years ago, and I believe that, that's the kind of results out of those activities. Having everything applied, that can create the value in the future. So that's one of the kind of a basic plan that you are doing. Masa and Goto-san have been applying such patent everywhere.

What kind of financial billet do you think there are? Having 3,000 patents, how many months or how much money has had been spent, which I don't know. But that can be one base for the golden goose, I'm not sure. But how do you think about that?

Spent application requires manpower and lots of the time and money as well. In the past few years, AI-related patent has been applied aggressively by Masa and his team, which we try effectively to address utilizing AI so that we became more quickly in terms of applying for the patent, still some costs required but that can be the seeding phase for our future growth of the business. So we actually encourage, although there might be some cost come along. But still, I think that it's good to challenge. And the patent is quite interesting because whether to be applied better or not applying is better. There are some cases like that as well. So that is something that we do have some experts, professionals on patent from the legal team internally so that we'll be able to address so they don't really miss the opportunity.

So what I'm hearing because you have this with OpenAI, that allows you to provide the resources to do compared to other big tech players that are in short in terms of resources and so on. But if you apply more patent application than the others? Is that because of OpenAI investment?

Well, the structure or the approach itself has been sometimes studied and analyzed by Masa, which is a great effort he's been making, I think. .

Next.

MJ from Bloomberg. I have 2 questions. First, about Ohio AI data center project, according to media coverage, NVIDIA guaranteed some $250 trillion worth, so that OpenAI can lease up to 10 gigawatt or something. Can you make a comment on that? .