Softbank posts $3.8b loss ahead of planned ‘Stargate’ investment
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The news: Softbank swung to a loss for the fiscal third quarter as it shouldered losses in its private Vision Fund portfolios.
The numbers: Softbank reported a net loss of ¥369.2 billion ($3.83 billion) for the fiscal third quarter compared with a profit of ¥950 billion a year ago. Analyst consensus expected a net profit of ¥234 billion. The Japanese firm’s Vision Fund saw a ¥309.9 billion loss.
The context: Softbank’s tech-heavy Vision Funds continue to prove volatile for the Japanese player, as some of their higher profile investments such as ride-sharing app Didi and ecommerce group Coupang have seen valuation drops. The Vision Fund losses follow two successive quarters of gains.
Last month, US President Donald Trump, Softbank CEO Masayoshi Son, Oracle and OpenAI announced plans to launch an AI infrastructure project dubbed ‘Stargate’. While Trump said the company plans to immediately start investing USD100 billion which would ramp up to USD500 billion in equity and debt over four years, the exact project timeline and blueprint for financing remains unclear.
The sources: Softbank results, Financial Times, Capital Brief
