AI TRENDS | AI Concerns Hit Tech Stocks as SoftBank Reports First Net Loss in Nearly Two Years

According to Jin10, SoftBank recorded a net loss of 1.12 trillion yen ($7.1 billion) in its second fiscal quarter, its first net loss in nearly two years and a sharp reversal from a profit in the same quarter last year. Market concerns about spending and demand in the artificial intelligence sector had weighed on the company’s major holdings. Shares of chipmakers Arm and Intel and South Korean e-commerce company Coupang fell, dragging down SoftBank’s overall results. Its Vision Fund, which manages equity stakes in hundreds of technology startups, recorded a loss of 81.6 billion yen. SoftBank is increasingly seen as a barometer of sentiment toward OpenAI and the broader AI sector. Its shares have fallen more than 50% since reaching a record high in June, amid concerns about borrowing to fund large-scale AI investments and fears that a sweeping Democratic victory in the U.S. midterm elections could stall many projects associated with Masayoshi Son.