Japanese investment group SoftBank has reported a net loss of about 1.1 trillion yen, equal to roughly $7 billion, for the three months ending in September. The result marks a major change from the 2.5 trillion yen profit recorded during the same period a year earlier. A large write-down linked to artificial intelligence infrastructure projects in the United States was a major reason for the loss.
The company said a subsidiary had invested in equipment for US data centre projects whose plans were later revised. This led to a write-down of around $3.7 billion. The change shows how quickly large technology investments can become a financial risk when projects are delayed, reduced or redesigned.
SoftBank has made artificial intelligence a central part of its investment strategy. One of its biggest commitments is a $64.6 billion investment for a 13% stake in OpenAI, the company behind ChatGPT. SoftBank also has interests across AI models, data centres, chips and robotics. These investments could bring large returns if demand continues to grow, but they also require significant spending and long-term confidence in the market.
The company’s financing costs have also increased. SoftBank reported that these costs more than doubled to 462 billion yen during the quarter. Higher borrowing expenses can place additional pressure on a business that is already spending heavily on technology projects.
Investors have become more cautious about the speed and profitability of the AI boom. Some companies are spending billions on data centres and computing equipment before knowing how quickly customers will generate enough revenue to cover the costs. Changes in US policy after the midterm elections have added another source of uncertainty.
SoftBank’s results highlight the risks involved in making large bets on a fast-changing industry. The company still sees AI as a major long-term opportunity, but its latest figures show that the path to profit may be uneven. Investors will be watching how it manages its commitments and whether its technology investments begin to deliver stronger returns.
