SoftBank Group reported a surprise ¥1.1tn ($7bn) quarterly loss for the three months to September, missing analysts' expectations of a ¥84bn profit and marking its first quarterly loss in nearly two years. The loss stems from a $3.7bn writedown tied to its ambitious US data centre expansion, specifically non-refundable advance payments for gas turbines and grid equipment for projects including the Ports-Pike Technology Campus in Ohio. The Ohio facility, set to be powered by a $33bn gas-fired power plant, is central to founder Masayoshi Son's AI strategy, with OpenAI committed to a 20-year lease as anchor tenant. SoftBank has committed about $65bn to OpenAI, its largest single AI bet.
CFO Yoshimitsu Goto insisted there are no plans to downsize the Ohio project and noted potential rebates of up to $2.1bn on future equipment purchases. The results also included a ¥270.1bn loss on Intel holdings and derivatives. SoftBank shares have fallen over 50% since June amid mounting challenges to the AI boom. The company is expected to participate in a funding round that could value OpenAI at $1.25tn, though any stake revaluation will await the round's completion.
Source: Financial Times Companies · Summarized by HeadlinesBriefing