SoftBank posts quarterly net loss of $7 billion — CNBC

Japan's SoftBank Group reported a net loss of 1.12 trillion yen, or about $7 billion, in the second quarter of the fiscal year. A year earlier, the company posted a net profit of 2.5 trillion yen for the same period, CNBC reports.

Revenue exceeds expectations

SoftBank's quarterly revenue totaled 2.22 trillion yen, exceeding LSEG's forecast of 2.02 trillion yen.

SoftBank shares closed Tuesday's trading up 13.9%. This came amid gains in Asian technology stocks, including Samsung Electronics and SK Hynix, following the Wall Street market rebound overnight.

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Investments in OpenAI and AI infrastructure

OpenAI is one of the key areas of SoftBank's artificial intelligence investment strategy. In October, the Japanese conglomerate completed an additional $30 billion investment in the developer of ChatGPT. SoftBank's total investment in OpenAI reached $64.6 billion, while its stake is approximately 13%.

On the eve of the publication of its financial results, SoftBank, together with Grab and Malaysia's PETROS, announced plans to allocate $1.85 billion in initial capital for the development of AI infrastructure in Malaysia. The project's long-term goal is to reach at least five gigawatts of computing capacity for AI.