SoftBank Group swung to a net loss of about 7 billion dollars in its fiscal second quarter after writing down advance payments for its United States data centre projects. The Japanese technology investor reported a loss of 1.12 trillion yen against an expected profit of 129 billion yen, following a 3.7 billion dollar writedown for its United States data centre projects and falling AI valuations.
Why it matters
The shares told the story first. SoftBank tumbled as much as 11 percent in Tokyo before steadying to end about 3 percent lower, and the loss weighed on sentiment even as the Nikkei rose for a third straight session. The writedown covers non refundable advance payments for data centre equipment, and it landed alongside a cut to equipment procurement plans that also hit suppliers such as GE Vernova, whose shares fell more than 6 percent. The loss also comes as Anthropic presses ahead with a 1.4 trillion dollar listing, a reminder that the AI trade is splitting between builders and backers.
The loss puts a number on the strain in AI financing. SoftBank is one of the biggest backers of the AI buildout, and its United States data centre projects are among the largest in the world. When the company that funds the buildout writes down billions, the question for every other investor is whether the spending will pay off, and how fast.
What happens next
The wider market gave a mixed answer on the same day. CoreWeave beat estimates and raised its forecast, Asian stocks rallied, and Anthropic pressed ahead with a listing targeting a 1.4 trillion dollar valuation. But the SoftBank loss is a reminder that the buildout is being paid for with real money, and that the bills are starting to arrive.
What happens next will be decided by whether the data centre projects deliver the returns their backers promised. SoftBank shares steadied after the early plunge, but the writedown will hang over the next round of AI financing decisions. For now, the biggest funder of the boom has just posted one of its biggest losses. GE Vernova, a supplier to SoftBank gas fired power plant and data centre project in Ohio, fell more than 6 percent on the procurement cut.
