AI bet backfires! Data center project write-downs and weaker tech stock holdings cause SoftBank (SFTBY.US) to post a Q2 loss of $7.1 billion

According to Zhitong Finance APP, SoftBank (SFTBY.US) has recorded its first net loss in nearly two years, mainly due to a $3.7 billion impairment loss from a U.S. data center project, combined with increasing market concerns over the sustainability of artificial intelligence (AI) growth, which has impacted the investment giant’s main portfolio holdings. The financial report shows that SoftBank posted a loss of 1.12 trillion yen (approximately $7.1 billion) in the second fiscal quarter, marking a sharp reversal from its profit in the same period last year and falling far short of analysts’ average profit expectation of 129 billion yen.