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Japan's SoftBank Group reported a USD 7 billion quarterly loss on November 10, 2026, after US AI data center expenses and rising borrowing costs hit its earnings. The company recorded a net loss of 1.1 trillion yen for July to September, reversing a 2.5 trillion yen profit from the previous year.
The loss highlights growing financial pressure on founder Masayoshi Son's aggressive AI expansion strategy. SoftBank recorded a USD 3.7 billion loss after changing equipment purchase plans for US data center projects.
Its quarterly financing costs also more than doubled to 462 billion yen, adding pressure to its overall financial performance.
SoftBank made advance payments for power generation equipment to support its planned AI data centers. However, changing project requirements forced a subsidiary to revise its equipment procurement plans. The changes created a USD 3.7 billion financial hit for the company.
One major development involves a large data center project in Pike County, Ohio. SoftBank expects the infrastructure business to grow significantly over the next decade.
Chief Financial Officer Yoshimitsu Goto said, "These data center projects have only just begun, and we expect that over the next five or 10 years, they will grow further and become much larger in scale."
SoftBank could also recover some losses through future equipment purchase rebates. The company expects potential rebates of up to USD 2.1 billion under the revised arrangements.
SoftBank's financing costs reached 462 billion yen, or around USD 2.9 billion, during the quarter. The company borrowed heavily through loans and corporate bonds to support its growing investments. Its borrowing included a USD 11.87 billion term loan and a USD 10 billion corporate bond.
The company raised a record USD 56.5 billion during the quarter to support its investment plans. Its largest AI investment remains OpenAI, with SoftBank having invested USD 64.6 billion for a 13% stake. These commitments increase investor concerns about future returns from artificial intelligence.
SoftBank's financial results arrive during a difficult period for the global AI industry. Investors increasingly question whether massive spending on AI infrastructure will generate enough profits. Concerns about regulations and data center construction also affect market confidence.
SoftBank shares have nearly halved since June as investor interest in AI stocks weakened. Although its shares gained around 14% before Tuesday's results, financial pressure remains significant. The latest loss raises fresh questions about the company's ability to sustain its expensive AI expansion.
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