TOKYO - SoftBank Group reported a net loss of 768 billion yen for the six months from April to September, largely due to losses associated with a review of its artificial intelligence data center plans in the United States, but the Japanese technology investment giant said it would continue pursuing its long-term AI strategy despite the financial setback.
The company announced that its bottom-line loss for the first half of the fiscal year was driven primarily by approximately 600 billion yen in losses recorded after reassessing plans to develop AI-related data centers in the United States.
The substantial loss highlights the financial risks associated with SoftBank Group's aggressive investment strategy as it seeks to establish a leading position in the rapidly expanding global artificial intelligence industry.
Despite the disappointing results, Chief Financial Officer Yoshimitsu Goto emphasized that the company remains committed to its long-term objectives rather than reacting to short-term fluctuations in financial performance.
"We want to continue moving forward steadily, keeping our eyes on the vision we have for the future, without getting caught up in short-term ups and downs," Goto said.
SoftBank Group has continued expanding its investments in artificial intelligence, including cumulative commitments totaling 10 trillion yen to US-based OpenAI, as part of its strategy to capitalize on growing demand for advanced AI technologies and infrastructure.
The company's investment approach reflects its expectations that artificial intelligence will become a major driver of economic growth, although the substantial capital requirements and uncertain timetable for generating returns present significant challenges.
Attention is now focused on whether SoftBank Group can translate its large-scale AI investments into sustainable profits, particularly as the company continues committing substantial financial resources to the sector despite recording heavy losses.
Source: TBS
