SoftBank reported a net loss of 1.1 trillion yen ($7 billion) in the July–September quarter, reversing a 2.5 trillion yen profit a year earlier that was boosted by a rise in the value of its OpenAI stake.

The loss included about $2.9 billion in advance payments written off after SoftBank’s subsidiary Silver Bands 7 LLC reassessed equipment plans; roughly $6.6 billion of the advances remains earmarked for purchases.

SoftBank had paid about $9.5 billion to reserve equipment and manufacturing capacity amid tight supply and long lead times, but changes to project requirements or schedules can turn those advance commitments into costs, while debt adds ongoing financing expenses.

SoftBank said it could receive up to $2.1 billion in rebates over the next decade, but these would be credits against future purchases, not immediate cash, and depend on the company placing further orders.

The procurement changes do not mean the PORTS-Pike Technology Campus in Ohio has been canceled, and about $6.6 billion remains allocated to that and other projects; SoftBank has not detailed which equipment requirements changed or how the secured equipment will be allocated.

SoftBank is reassessing its procurement strategy as concerns grow about AI investment returns and the political outlook for data centers after the U.S. midterm elections, amid a broader selloff in AI-related stocks.

The falling share prices of Arm Holdings, Intel and Coupang also weighed on results, while SoftBank’s Vision Fund posted an 81.6 billion yen loss against expectations for a profit.

SoftBank invested a further $30 billion in OpenAI this year, bringing its total investment to $64.6 billion for a roughly 13% stake; OpenAI made up 21% of the equity value of SoftBank’s holdings at the end of September.

Investors are also questioning how shifts in private AI-company valuations, including OpenAI’s, could affect assets that cannot readily be sold at a public market price.

SoftBank is investing heavily in data-center infrastructure in Texas, Ohio and France, while SB Energy’s planned listing has been delayed and was reportedly targeting a $50 billion valuation.

SoftBank pointed to a 20-year lease with OpenAI 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.

Chief Financial Officer Yoshimitsu Goto said SoftBank moved quickly to secure equipment but would now conduct a thorough review, while monitoring how the elections affect sentiment toward AI.