SoftBank Group has recorded a US$3.7 billion loss after revising its procurement strategy for power-generation equipment intended for artificial intelligence (AI) data centre projects in the United States.
The Japanese investment group reported a loss of ¥597.2 billion (approximately US$3.7 billion) following changes to equipment purchasing arrangements made through Silver Bands 7 LLC, a subsidiary backed by SoftBank Group and SoftBank Vision Fund II-2.
The financial impact was disclosed in the company’s financial report on 10 November 2026. For the quarter ended 30 September 2026, net loss attributable to owners of the parent reached ¥1.1 trillion, compared with net income of ¥2.5 trillion in the corresponding period a year earlier.
Revised procurement strategy drives impairment
Silver Bands 7 had previously reserved manufacturing capacity and committed to purchasing power-generation equipment in anticipation of supply constraints affecting planned and existing AI infrastructure projects.
However, as project requirements evolved, the company revised its procurement arrangements, resulting in the recognition of losses associated with equipment no longer included in its updated plans.
The US$3.7 billion charge comprises approximately US$2.85 billion in non-refundable advance payments and US$880 million related to contract modifications and settlements.
SoftBank’s accounting disclosures distinguish between advances already paid and additional cash payments associated with contract modifications and settlements, which are expected from the third quarter of the fiscal year onwards.
Cumulative procurement payments reached US$9.5 billion from the previous fiscal year through 30 September 2026. Of this amount, US$6.6 billion remained allocated to equipment purchases for the PORTS-Pike power-generation project and other developments.
Silver Bands 7 also secured rights to rebates of up to US$2.1 billion over the next decade on future equipment purchases, subject to certain conditions. However, SoftBank did not recognise these rights as an asset because their value had not yet been determined.
Investment gains and financing costs affect earnings
The procurement-related loss came alongside weaker investment gains and higher financing expenses.
SoftBank’s total investment gains declined by 56% year on year to ¥1.73 trillion for the six-month reporting period. Meanwhile, finance costs more than doubled to ¥790.7 billion.
The company attributed the increase in financing expenses to higher borrowing and corporate bond balances, increased funding rates and the early repayment of bridge loans, which resulted in the recognition of remaining unamortised financing costs.
US AI data centre developments remain underway
Despite the procurement adjustments, SoftBank’s financial and earnings presentations continued to identify its major US data centre projects as active developments.
The company’s plans include the PORTS-Pike campus in Pike County, Ohio, which was listed as preparing for construction with 8 GW of planned IT capacity and a 20-year lease agreement with OpenAI signed on 17 August 2026.
Another development in Milam County, Texas, was listed as under construction, with 753 MW of planned IT capacity and a 15-year agreement with OpenAI.
SoftBank has described its advance equipment spending as bridge investment intended to secure capacity ahead of anticipated supply shortages, with recovery expected through project financing.
Under its proposed development structure, a special-purpose company would finance data centre buildings and power infrastructure through project financing without recourse to SoftBank Group, while the offtaker would provide servers and other IT equipment.
The company has characterised the procurement loss as separate from the PORTS-Pike project. The revised purchasing arrangements therefore represent a change in equipment procurement rather than an announced cancellation of the two US data centre developments.
The extent to which SoftBank can recover its remaining bridge investments through project financing and qualify for future equipment rebates will be important in determining the longer-term financial impact of its AI infrastructure expansion.
