SoftBank Group reported a quarterly loss of approximately $7 billion as heavy financing costs, advance payments for U.S. data center projects and declining investment valuations weighed on the Japanese technology conglomerate, according to Reuters [2]. The setback highlights the financial risks of SoftBank's aggressive artificial intelligence infrastructure expansion, including its substantial exposure to OpenAI and plans to finance large-scale data center and power-generation projects across the United States.
The Tokyo-based technology investor said the loss was driven by hefty advance payments tied to the buildout of U.S. data centers and by a decline in the value of its holdings, the report stated.
SoftBank initially attributed that portion to financing for "existing and planned" data center projects in the state, then backtracked to say the losses are "completely unrelated" to any dealings in Ohio, the report said [1].
SoftBank's AI Exposure and Financing Strategy
The financing costs more than doubled during the quarter, Reuters reported [2].
SoftBank's exposure extends beyond OpenAI. The company's SB Energy subsidiary announced in February that it would spend $33 billion on a 9.2-gigawatt natural gas power plant, and SoftBank reportedly put down deposits on more than 13 gigawatts of power equipment, according to TechCrunch [3]. Nvidia has separately committed to invest $1.5 billion in SB Energy and to provide up to $105 billion in credit for the Ports-Pike data center near Cincinnati, Ohio, which is set to be fully leased to OpenAI, according to SEC filings cited by TechCrunch [4].
Details of the Ohio Data Center Loss
The project, led by SoftBank's SB Energy unit, is located at the Portsmouth Site in Pike County, Ohio, and could grow to 10 gigawatts, making it the world's largest data center, according to a securities filing cited by ZeroHedge [5].
SoftBank's disclosure followed a claim by Elon Musk on X that SoftBank was defaulting on turbine orders, ZeroHedge reported [6]. SoftBank's CFO denied any turbine default, according to AI Stock Wire [7].
Market Reaction and Analyst Concerns
SoftBank shares have fallen by more than half from their June peak, The Wall Street Journal reported [8].
The decline comes amid broader turbulence in AI infrastructure investment. At least 47 large data center projects have been delayed, withdrawn or blocked in 2026 alone, according to data from regulatory intelligence company RegLayer cited by NaturalNews.com [9]. Oracle has also invoked force majeure on its $18 billion Stargate data center campus in New Mexico [10].
Outlook and Implications
SoftBank is seeking up to $100 billion from Gulf investors after maxing out junk bonds, margin loans and Japanese retail financing, the Financial Times reported [11]. The company's attempt to raise a downsized $6 billion margin loan backed by its OpenAI stake stalled in June amid rising concerns about collateral value, Bloomberg reported [12].
Separately, China blocked SoftBank's proposed $5.4 billion acquisition of ABB's robotics business on national security grounds, ABB confirmed on November 5, according to Robotics and Automation News [13]. Regulators expressed concern that data for training AI models could be transferred overseas, The Robot Report noted [14]. The decision adds to the challenges facing SoftBank as it seeks to expand its presence in industrial robotics and physical AI [13].
References
- SoftBank Loses $7 Billion as AI Data Centers Turn Out to Be Risky Investment. https://futurism.com/future-society/softbank-billion-loss-ai-data-centers-financing
- SoftBank books $7 billion quarterly loss on US data centre hit, financing costs. https://www.reuters.com/world/asia-pacific/softbank-swings-7-billion-net-loss-second-quarter-2026-11-10/
- SoftBank’s billion-dollar loss may have put a cap on AI’s natural gas ambitions. https://techcrunch.com/2026/11/12/softbanks-billion-dollar-loss-may-have-put-a-cap-on-ais-natural-gas-ambitions/
- Nvidia investing $1.5B in SoftBank data center developer behind OpenAI project. https://techcrunch.com/2026/08/17/nvidia-investing-1-5b-in-softbank-data-center-developer-behind-openai-project/
- Nvidia Confirms It Will Back Massive 4.25GW SoftBank Data Center In Ohio For $105 Billion. https://www.zerohedge.com/markets/nvidia-confirms-it-will-back-massive-425gw-softbank-data-center-ohio-105-billion
- "Could Be First Shoe To Drop": AI Power Stocks Tumble As SoftBank's Write-Down Deepens Bubble Fears. https://zerohedge.com/markets/ai-power-stocks-tumble-softbanks-write-down-deepens-bubble-fears
- SoftBank (SFTBY) loses $7B, with $3.7B tied to power gear. https://aistockwire.com/blog/softbank-sftby-7-billion-loss-ai-power-equipment-write-off-november-2026
- SoftBank Posts $7 Billion Loss as AI Trade Falters. https://www.wsj.com/business/earnings/softbank-group-posts-quarterly-loss-on-special-losses-linked-to-u-s-data-center-projects-23b37a41
- AI bubble’s first major leak: Why the $10T data center boom is starting to crack. https://www.naturalnews.com/2026-10-22-ai-bubble-first-major-leak-data-center.html
- Oracle's Force Majeure Reveals the AI Bubble's First Real Crack - NaturalNews.com, September 28, 2026.
- Masa Passes The Hat: SoftBank Seeks $100 Billion From The Gulf After Maxing Out Junk Bonds, Margin Loans And Japanese Retail. https://www.zerohedge.com/markets/masa-passes-hat-softbank-seeks-100-billion-gulf-after-maxing-out-junk-bonds-margin-loans
- SoftBank Attempt to Get Downsized $6 Billion OpenAI Margin Loan Stalls. https://www.zerohedge.com/markets/softbank-attempt-get-downsized-6-billion-openai-margin-loan-stalls
- China blocks SoftBank’s $5.4 billion takeover of ABB Robotics. https://roboticsandautomationnews.com/2026/11/10/china-blocks-softbanks-5-4-billion-takeover-of-abb-robotics/106941/
- Industry experts discuss China blocking SoftBank acquisition of ABB Robotics. https://www.therobotreport.com/industry-experts-discuss-china-blocking-softbank-acquisition-abb-robotics/
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