SoftBank Deepens Losses with AI Bets, but Stock Rises

The Japanese group announced a net loss of 1.12 trillion yen in the second quarter, attributed to the decline of Intel and purchases of equipment for AI data centers in the United States. At the same time, it highlights an investment valued in OpenAI and continues massive spending in energy to secure its projects.

OpenAI, High Valuation and Uncertain Profitability

SoftBank values its investment in OpenAI at $54.6 billion, with a fair value of $99.6 billion, resulting in a capital gain of $45 billion. The group emphasizes this partnership, described as strategic by an executive, particularly to the general public. Despite this valuation, OpenAI remains far from profitability and has not yet indicated a concrete path to achieve it.

Energy Purchases for Data Centers, $9.47 Billion Committed

Since the beginning of the year, SoftBank has spent $9.47 billion on energy production equipment intended to power data centers in the United States, including a project in Ohio. The group explains that it wants to ensure access to this equipment for its future AI sites, due to concerns about shortages and significant supply delays. An executive specifies that these investments were anticipated to secure the supply.

Quarterly Losses and Mixed Stock Market Reaction

In the second quarter, SoftBank reported a net loss of 1.12 trillion yen, equivalent to $7 billion. For the half-year ending September 30, the loss amounts to 597.2 billion yen, which corresponds to approximately $3.7 billion. Despite these results, the group's stock rose by 13.9%, in a favorable context for Asian tech stocks. SoftBank attributes these losses to the decline in Intel's stock price and acquisitions of equipment for data centers dedicated to artificial intelligence in the United States.