SoftBank to face scrutiny of AI strategy at second-quarter earnings after selloff

SoftBank Group is due to report its second-quarter results on Tuesday as investors assess its exposure to artificial intelligence and the financing of its investments, Business Recorder reported. The company has spent $64.6 billion for a 13% stake in OpenAI, while concerns about the AI sector and delays to data-centre construction have increased scrutiny of its strategy. China has also blocked SoftBank’s planned $5.4 billion acquisition of ABB’s robotics division.

SoftBank’s net interest-bearing debt stood at 10.8 trillion yen at the end of June, up from 6.6 trillion yen a year earlier. Analysts’ forecasts for July-September net profit range from 233 billion yen to a loss of 113 billion yen, while SoftBank shares fell 11% on Friday and were down 23% year to date. Investors are also watching for comments on debt-based financing, the value of holdings such as Arm, and the company’s response to the blocked deal.