Masa's $3.7 Billion Bonfire: SoftBank Posts $7 Billion Loss After Torching Deposits On AI Power Gear As Interest Costs Double

Softbank Group and ABB are in talks to revive a $5.4B robotics acquisition blocked by China. ABB's robotics unit generated $1.7B in revenue (9M YTD) but posted a $23M net loss. China's approval remains uncertain, with potential carve-out or alternative deals under consideration. Softbank aims to expand its AI and robotics capabilities.

SoftBank Group reported a $7.1 billion net loss in Q2, its first in nearly two years, due to a $3.7 billion writedown on an Ohio data-center project and losses in its Vision Fund. The company owns 86.4% of Arm Holdings and has borrowed $25 billion against 72% of its Arm shares, making Arm's stock performance crucial for SoftBank's financial health. Arm's unbilled revenue balance of $577.2 million, with a $300 million payment due by March, is a key figure to watch.

SoftBank and Grab plan a US$1.85 billion investment in Malaysian AI infrastructure, with US$1 billion from SoftBank, US$750 million from Grab, and US$100 million from PETROS. The funds will develop AI computing capacity in Sarawak and Peninsular Malaysia, with Grab leading the Peninsular project. The investment is part of a multi-year program to meet rising AI demand. The agreement supports Malaysia's AI Nation 2030 plan and may create jobs in engineering and technical fields.

SoftBank reported a $7 billion net loss for Q2, reversing a $22.5 billion profit from the prior year. The loss was attributed to declines in its $64.6 billion investment in OpenAI, which now faces scrutiny as SoftBank's shares have halved since June. The company is also exposed to broader market concerns affecting AI and chip stocks.

SoftBank reported a $7bn quarterly loss, its first in nearly two years, due to a $3.7bn write-down on US data centre projects. The loss was driven by a reassessment of power generation strategies and declines in chipmaker stocks like Intel and Arm, as well as e-commerce firm Coupang. SoftBank's Vision Fund also posted a loss of ¥81.6bn. Additionally, China blocked its $5.4bn acquisition of ABB Robotics, citing regulatory concerns.

SoftBank, Grab, and PETROS agreed to invest $1.85B in AI infrastructure in Malaysia, with SoftBank contributing $1B, Grab $750M, and PETROS $100M. The projects aim to provide AI computing capacity and support Malaysia's AI Nation 2030 plan. Grab's CEO will oversee development, and SoftBank agreed to a five-year lock-up on Grab shares.