The Zhitong Finance App learned that SoftBank (SFTBY.US) recorded its first net loss in nearly two years because a US data center project caused a write-down loss of 3.7 billion US dollars, compounded by rising market concerns about the sustainability of artificial intelligence (AI) growth, which impacted the investment giant's main holdings. According to financial reports, SoftBank recorded a loss of 1.12 trillion yen (about 7.1 billion US dollars) in the second fiscal quarter, a sharp reversal from the profit of the same period last year, and far lower than the average profit expected by analysts of 129 billion yen.
According to reports, losses are mainly related to non-refundable advance payments made by SoftBank for the Ohio data center park project. These payments are used to ensure equipment supply and manufacturing capacity. Meanwhile, falling stock prices for chipmakers Arm (ARM.US) and Intel (INTC.US), as well as South Korean e-commerce giant Coupang (CPNG.US), dragged down SoftBank's overall performance. The Vision Fund (Vision Fund) business segment, which manages shares in hundreds of tech startups, recorded a loss of 81.6 billion yen, but the market originally expected the sector to achieve a profit of 222 billion yen.
It is worth mentioning that financial reports show that SoftBank has completed its previously promised additional investment in OpenAI, totaling US$30 billion. The investment was completed in three batches through the second phase of the SoftBank Vision Fund, which were invested on April 1, July 1, and October 1, 2026, respectively. The amount of each batch was 10 billion US dollars. After the additional investment was completed, SoftBank's cumulative investment in OpenAI reached US$64.6 billion, with a shareholding ratio of about 13%. SoftBank said that the third $10 billion investment was completed on October 1, and the capital came from foreign currency senior bonds issued by the company in September. After the completion of this investment, all of SoftBank's previous bridge financing arrangements for additional investment have been cancelled, and related loans have also been repaid.
Currently, SoftBank is increasingly being viewed as a “weather vane” for sentiment towards OpenAI and the broader AI sector. Affected by market concerns that its debt for large-scale AI investments and factors such as the Democratic Party's overall victory in the US midterm elections may cause several AI projects Sun Zheng to stagnate, SoftBank's stock price has fallen sharply by more than 50% since reaching a record high in June.
As Sun Zhengyi's multi-billion dollar AI projects continue to increase, and the future revenue returns these projects can bring are still largely uncertain, investors are increasingly concerned about this surge in spending. From bonds to share mortgages to financing secured by OpenAI shares, SoftBank is raising capital for AI investments in a variety of ways. The increasing number of financing instruments also means that its balance sheet is more sensitive to changes in interest rates, credit spreads, and the valuation of its AI assets.
Sun Zheng has many layouts in the field of AI, and the most notable one is his big bet on OpenAI. If OpenAI's valuation continues to rise and the IPO progresses as scheduled, this may become yet another miracle in Sun Zhengyi's life. But now the trend has changed. As the AI valuation ceiling falls, OpenAI's IPO has been postponed to 2027. This means that SoftBank's heavy position cannot be cashed out through the open market in the short term, yet interest on the debt that supports this position is moving on a quarterly and daily basis.
The pressure quickly spread to the bond market. SoftBank's 5-year credit default swap (CDS) spread soared to 466 basis points, a record high since October 2022. The market is worried, will SoftBank's financial situation become the next risk point in the AI chain?
For SoftBank investors, the current core conflict is shifting to “when will AI investments pay off”. As the OpenAI listing schedule is unclear, SoftBank's financial situation will be the top focus of investors' attention.