SoftBank Group Corp. posted its first net loss in nearly two years on Tuesday, after taking a $3.7 billion write-down on a US data-center project, as concerns grow over the sustainability of AI growth.
Despite the loss, SoftBank shares jumped almost 14% after the announcement, as Asian technology stocks surged Tuesday, lifted by a sharp decline in oil prices and a renewed surge in chip buying.
SoftBank reported a $7.1 billion loss in Q2 Tuesday, reflecting non-refundable advance payments made to secure equipment and manufacturing capacity for its data-center campus in Ohio.
Declines in the stock prices of chipmakers Arm Holdings Plc and Intel Corp., along with Korean e-commerce giant Coupang Inc., further weighed on SoftBank’s bottom line. The Vision Fund segment, which oversees stakes in hundreds of tech startups, reported a loss of ¥81.6 billion, against market expectations for a profit.
The latest earnings come as SoftBank shares have fallen more than 50% from their record high in June, amid concerns about the debt incurred to finance its substantial AI investments and fears that a Democratic sweep in the U.S. midterm elections could stall many of founder Masayoshi Son’s projects.
SoftBank held a 13% stake in OpenAI as of the start of October.
By CEO NA Editorial Staff
