SoftBank reported a 1.1 trillion yen ($7 billion) net loss for the July–September quarter, a sharp reversal from a 2.5 trillion yen profit a year earlier that included a major gain in the value of its OpenAI stake.

The loss comes as SoftBank rethinks equipment procurement for U.S. data-center and power projects after reserving capacity, amid concerns about AI returns and the political outlook for data centers following the U.S. midterm results.

SoftBank said it changed its procurement strategy to reflect evolving needs across existing and planned projects, but did not provide a full-year earnings forecast.

The shift highlights a broader infrastructure risk: advance commitments can secure scarce equipment, but project changes can turn prepayments into costs while debt continues to generate financing expenses.

SoftBank said it may receive discounts of up to $2.1 billion on equipment purchases over the next decade, subject to conditions; the amount was uncertain, was not recorded as an asset by September 2026, and cannot be deducted from the loss already reported.

The key test is whether planned equipment is delivered and put to use, conditional discounts are realized, and infrastructure spending ultimately produces operations and cash recovery.

The projects include an Ohio development that could cost nearly $500 billion, with SB Energy also investing more than $33 billion in natural-gas power generation for the site.

SoftBank highlighted a 20-year OpenAI lease for eight gigawatts of IT capacity at an Ohio data-center project and said a planned Texas site would use a closed-loop, air-cooled system to address water-use concerns.

Uncertainty around U.S. data-center development, including in Texas and Ohio, has weighed on power suppliers GE Vernova and Bloom Energy, whose shares sold off.

Political and regulatory uncertainty after the Democratic Party’s midterm-election success has raised investor concerns about data-center approvals, construction and financing, clouding expectations for AI returns.

Investors are also wary that shifting valuations of private AI companies such as OpenAI could expose risks in assets that cannot readily be sold at a public-market price.

SB Energy delayed its planned September IPO amid market headwinds and valuation concerns, but still hopes to list in December or early 2027; the potential $50 billion debut adds uncertainty to SoftBank’s exposure and expected returns.