Observed Signal · Nov 10, 2026 · Earnings & Financials · Source: PitchBook · Impact: 3/5
SoftBank swings to $7B quarterly loss on US data centre costs
SoftBank Group reported a quarterly net loss of $7 billion for the quarter ended September 30, 2026, driven by costs related to its US data centre operations. The loss reflects significant investments and operational expenses in expanding its AI infrastructure in the United States. This marks a notable financial setback for the Japanese conglomerate, which has been heavily investing in AI and technology ventures. The announcement was made on November 10, 2026, and highlights the financial pressures of scaling data centre capacity.
SoftBank's significant quarterly loss underscores the high costs and financial risks associated with AI infrastructure expansion, which is a key trend in private markets and technology investment.
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Key Takeaways & Evidence Grounding
- SoftBank Group reported a quarterly net loss of $7 billion for the quarter ended September 30, 2026.
- The loss was driven by costs related to US data centre operations.
- The announcement was made on November 10, 2026.
- The loss highlights financial pressures from scaling AI infrastructure in the US.
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SoftBank posts $7B loss on U.S. data center and Intel stakes
SoftBank Group reported a fiscal second-quarter net loss of 1.12 trillion yen ($7 billion) on Tuesday, driven by losses related to U.S. AI data center equipment procurement and declining Intel shares. The company recorded a 597.2 billion yen ($3.7 billion) loss in the six months ending Sept. 30 due to changes in procurement plans for power generation equipment for its U.S. AI data center projects. Despite the loss, revenue rose 13.3% in the half-year, supported by growth in telecommunications and AI computing. The Vision Fund segment swung to a loss of 81.58 billion yen, compared with a profit of 2.38 trillion yen a year earlier. SoftBank's cumulative investment in OpenAI stood at $54.6 billion with a fair value of $99.6 billion. The company also announced plans with Grab and Malaysia's PETROS to commit $1.85 billion in initial capital for AI infrastructure in Malaysia, targeting at least 5 GW of AI computing capacity.
SoftBank boosted by $8.2B Intel gain
SoftBank reported fiscal first-quarter profit driven largely by a 1.3 trillion yen (about $8.2 billion) gain on its stake in Intel and a rise in the value of its stake in ByteDance. The company posted net profit of 347.3 billion yen for the June quarter, beating analyst expectations, while its Vision Funds saw a $1.7 billion gain led by a $2.2 billion increase in ByteDance's valuation. SoftBank recorded no investment gain or loss tied to OpenAI. Its AI computing segment posted a larger loss year-on-year, with higher R&D costs at owned chip companies such as Arm, Graphcore and Ampere cited as a reason.
SoftBank's $3B Turbine Loss Caps AI Gas Ambitions
SoftBank reported a $7.1 billion quarterly loss, with over $3 billion attributed to nonrefundable deposits on natural gas turbines that it now considers largely worthless. The company had over-ordered turbines, securing more than 13 gigawatts of capacity, nearly 50% more than needed, to expedite its AI data center power projects. This bet on natural gas as a key energy source for AI has fizzled as demand forecasts have softened and alternative solutions like grid connections and battery storage become more attractive. The loss is seen as a costly price discovery for the AI power market, though it is unlikely to trigger mass cancellations of gas plants. Experts suggest data centers may increasingly rely on grid power supplemented by batteries rather than dedicated gas turbines.
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