SoftBank faces scrutiny over AI strategy before earnings

AI · First reported 9 Nov, 09:17 · Updated 09:46

Image: Wikimedia Commons · Robert Wade · CC BY-SA 2.0

SoftBank’s upcoming results will be watched for signs that its AI investments remain on track, amid falling shares, a blocked robotics deal and questions about borrowing against its holdings.

SoftBank Group is due to report quarterly results on Tuesday; the value of its investment portfolio can make results difficult to predict.
SoftBank shares fell more than 11% in Tokyo on Friday, while the cost of insuring its debt reached its highest level in four years.
China blocked SoftBank’s planned $5.4 billion purchase of ABB’s robotics division; a separate report says weaker Arm shares could constrain borrowing against SoftBank’s holdings.

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Key facts

Quarterly results: Due Tuesday.
Share-price move: SoftBank shares fell more than 11% in Tokyo on Friday.
Debt-insurance spread: The five-year spread reached 466 basis points, its widest since October 2022.
OpenAI investment: SoftBank completed a $30 billion follow-on investment in October, taking its stake to about 13%.
ABB robotics deal: China blocked the planned $5.4 billion purchase of ABB’s robotics division.