SoftBank Group posted a fiscal second-quarter net loss of 1.12 trillion yen ($7 billion) on Tuesday, attributed primarily to two key factors affecting the Japanese investment giant’s performance. The company recorded a 597.2 billion yen ($3.7 billion) loss during the six-month period ending September 30 related to modifications in procurement strategies for power generation equipment dedicated to AI data center initiatives in the United States. Additionally, declines in Intel share valuations contributed to overall earnings pressures during the quarter.
The company had made advance purchases of power generation equipment for its U.S. AI data center ventures, including the PORTS-Pike Technology Campus in Pike County, Ohio, to address concerns about potential supply shortages and extended procurement timelines. Power availability has become an increasingly critical constraint as data centers and other major energy consumers place overwhelming demands on electrical grids. Cumulative expenditures for power-generation equipment associated with these U.S. projects totaled $9.48 billion as of the end of September.
In broader financial results, SoftBank’s revenue increased 13.3% during the six-month period, with growth driven by telecommunications and AI computing segments. However, the Vision Fund segment swung to a loss of 81.58 billion yen in the second quarter, compared with a profit of 2.38 trillion yen in the comparable year-earlier period. Vision Fund 1 reported an investment loss of $20 million for the quarter despite a $1.3 billion gain on ByteDance, as publicly traded portfolio companies experienced share price declines. The Vision Funds segment overall recorded investment gains of 85.45 billion yen, substantially lower than the 2.81 trillion yen achieved in the prior-year period.
Regarding SoftBank’s OpenAI investment, the company’s cumulative investment stood at $54.6 billion as of the end of September, with a fair value of $99.6 billion reflecting a cumulative investment gain of $45 billion. The company noted that potential valuation increases from a new OpenAI funding round had not yet been incorporated into reported results pending official announcement, with such updates potentially reflected in the fiscal third quarter. SoftBank shares closed 13.9% higher on Tuesday, with gains occurring alongside broader strength in Asian technology stocks.
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