SoftBank posts 7 billion dollar loss on data center costs

SoftBank recorded a 7 billion dollar loss in the last quarter, its first loss in nearly two years. The loss was driven by large prepayments for power generation facilities for planned US data centers, a decline in the value of investments such as Intel, and financing costs that more than doubled due to rising debt. The company had been investing heavily in AI infrastructure, but the upfront costs have weighed on its financial results.

Additionally, the Chinese government blocked SoftBank's planned 5.5 billion dollar acquisition of ABB's robotics division, specifically the China business which constitutes about 30% of the division, citing data security concerns. ABB and SoftBank are now exploring whether the China business can be carved out to save the rest of the deal. The blockage highlights the increasing geopolitical risks facing cross-border technology acquisitions, particularly in the semiconductor and robotics sectors. SoftBank's financial performance underscores the capital-intensive nature of the AI data center buildout and the challenges of navigating regulatory hurdles in key markets.