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SoftBank’s AI bets, debt under scrutiny ahead of earnings
SoftBank Group reports its quarterly earnings on November 9, with investors scrutinizing the Japanese tech investment firm’s AI bets, borrowing capacity, and China’s block on its planned US$5.4 billion purchase of ABB’s robotics division.
SoftBank’s net interest-bearing debt reached 10.8 trillion yen (US$68.2 billion) at the end of June, up from 6.6 trillion yen (US$41.7 billion) a year earlier.
Its shares fell 11% on November 6 and 4.2% on November 9. The stock is down 23% this year.
SoftBank has spent US$64.6 billion on a 13% stake in OpenAI.
Investors are assessing whether weaker Arm shares could limit SoftBank’s ability to borrow against its holdings.
It also has a roughly US$25 billion loan tied to Arm.
The pressure comes amid concerns that spending on AI-related data centers may be peaking.
SoftBank and ABB are weighing a carve-out of ABB’s China business to salvage the blocked deal.
🔗 Source: Reuters
