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SoftBank swings to $7 billion net loss in second quarter as tech selloff weighs on results

Japanese conglomerate's fiscal Q2 results contrast with stock gains driven by Asian tech rebound

Quick Look

SoftBank reported a fiscal second-quarter net loss of 1.12 trillion yen ($7 billion), swinging from a 2.5 trillion yen profit a year earlier, while its shares closed 13.9% higher amid an Asian technology stock rally.
Revenue of 2.22 trillion yen beat LSEG estimates of 2.02 trillion yen.
The company has invested $64.6 billion in OpenAI and announced a $1.85 billion AI infrastructure plan in Malaysia with Grab and PETROS.

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Why It Matters

SoftBank is a Japanese conglomerate with major technology investments, including a significant stake in OpenAI. The company reported fiscal second-quarter results showing a net loss of 1.12 trillion yen compared to a 2.5 trillion yen profit a year earlier, while revenue of 2.22 trillion yen exceeded LSEG estimates.

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SoftBank reported a fiscal second-quarter net loss of 1.12 trillion yen ($7 billion) on Tuesday.

SoftBank shares closed 13.9% higher on Tuesday. The gains came as Asian technology stocks, including Samsung Electronics and SK Hynix, rose following an overnight rebound on Wall Street.

Here's how SoftBank fared in the fiscal second quarter:

Net loss of 1.12 trillion yen in the quarter, compared with a net profit of 2.5 trillion yen a year earlier.

Revenue stood at 2.22 trillion yen in the quarter, compared with LSEG estimates of 2.02 trillion yen.

SoftBank has made OpenAI a major focus of its AI investment strategy. The Japanese conglomerate completed a $30 billion follow-on investment in the ChatGPT maker in October, bringing its total investment to $64.6 billion and its ownership stake to approximately 13%.

Ahead of its earnings release, SoftBank Group announced on Monday plans with Grab and Malaysia's PETROS to commit a combined $1.85 billion in initial capital to develop AI infrastructure in Malaysia, with a long-term target of at least five gigawatts of AI computing capacity.

What to Watch

AI outlook — possibilities, not facts

SoftBank will continue deploying capital into AI infrastructure and OpenAI despite quarterly losses
Likely · Within months

Open Questions

What specific factors drove the swing from 2.5 trillion yen profit to 1.12 trillion yen loss?
What is the timeline for the Malaysia AI infrastructure project's five-gigawatt target?
How will SoftBank fund its continued OpenAI investments given the quarterly loss?