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Bending IFRS fair-value rules for Derivatives Is Baaaaaaad

by Larry Chiang on November 11, 2025

– SoftBank’s Q2 2025 earnings revealed $15.7B in reported gains on OpenAI investments, with $8.5B from a “forward contract” created by internally transferring an unfunded $22.5B commitment from parent SBG to subsidiary Vision Fund 2 in September, allowing immediate fair-value recognition despite December funding.
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– The maneuver stems from a March 2025 $40B commitment to OpenAI at $260B pre-money valuation, following $10B invested in April ($7.5B via VF2); this booking, tied to OpenAI’s rising value partly driven by SoftBank’s own stake, echoes mark-to-market accounting used in VC but amplifies profits on paper assets.
image1.jpegWhile legal under, the approach invites scrutiny for circularity—gains based on a valuation incorporating the commitment itself—mirroring Enron-era tactics, especially as SoftBank simultaneously sold its $5.8B Nvidia stake to fund AI bets. 

 
 
JustDario 🏊‍♂️
⁦‪@DarioCpx‬⁩
Omg this is unbelievable ⚠️ – SoftBank booked gains on OpenAI shares by designating VisionFund2 to underwrite the second investment tranche at 500bn$ value that SBG cannot pay and “created” a Forward Derivative contract worth 8bn$ (all gains) out of thin air!

HOW IS THIS LEGAL?! pic.x.com/P5YQiklQLH

 
11/11/25, 2:58 AM
 
 


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