AsianFin -- SoftBank Group Corp. reported a 124% increase in quarterly profit, driven by strong AI demand that boosted startup valuations and chip unit sales, providing a boost to its data center investment plans.

The Tokyo-based company posted net income of ¥517.18 billion ($3.5 billion) for its fiscal fourth quarter, supported by the Vision Fund, which returned to profit with ¥26.1 billion, largely due to a surge in the value of ByteDance, the parent company of TikTok, and strong international sales.

This strong performance comes at a crucial time for SoftBank as it plans to invest up to $30 billion in OpenAI and lead a $100 billion initiative to build AI hardware in the U.S. Securing a healthy cash flow and balance sheet is essential for raising the capital needed at minimal cost.