SoftBank Group Corp. has reported a surprising net loss of 369.17 billion yen ($2.4 billion) for the third quarter of fiscal year 2024, driven by a downturn in its Vision Fund investments. The results, which fell short of analyst expectations, have raised concerns about the Japanese technology investor’s financial health and its ambitious plans in artificial intelligence (AI).

The Vision Fund, a cornerstone of SoftBank’s investment strategy, recorded a loss of 352.75 billion yen (2.29billion) for the quarter ended December 31. This marks as harp reversal from two consecutive quarters of profitability. Vision Fund 1 posted a 4.8 billion investment gain, but Vision Fund 2 logged a $2.9 billion loss, primarily due to declining valuations of publicly held portfolio companies like Coupang and Didi Global.

SoftBank’s investments in India, including Ola Electric, also faced significant declines. However, the IPO of Swiggy, another SoftBank-backed company, helped mitigate some of the losses. Since its inception in 2017, Vision Fund 1 has generated a gross gain of 21.6 billion, while Vision Fund 2 has accumulated a loss since 2019.

Despite the setbacks, SoftBank remains committed to its AI investment strategy. The company is reportedly in talks to invest up to  40 billion in OpenAI, following an initial commitment of 500 million. Additionally, SoftBank has pledged $15 billion to Stargate, an AI data center project in collaboration with OpenAI and Oracle.

During the quarter, the Vision Funds sold investments totaling  $($30.6 billion) as of December 31, down from 6.2 trillion yen in March.

The unexpected loss underscores the challenges SoftBank faces in balancing its high-risk investment strategy with financial stability.