--- title: "SoftBank lost ¥1.1tn: no gain on OpenAI, US$3.7bn written off on power equipment" summary: "SoftBank's results for July to September: the ¥1,115.3bn loss line by line, why a flat OpenAI valuation moves its numbers so much, the power-equipment write-off, and net asset value." url: https://www.thetechbag.com/blog/softbank-1-1tn-yen-loss-openai-flat-power-equipment format: Analysis desk: "Markets & the AI economy" region: Global published: 2026-11-10 facts_checked: 2026-11-10 author: TechBag (The TechBag Journal) tags: ["SoftBank","SoftBank Vision Fund","OpenAI","Arm","Intel","net asset value","fair value","AI data centres","PORTS-Pike","power equipment","write-off","bridge loan","earnings","Lenskart","Meesho"] cover: https://www.thetechbag.com/blog/covers/softbank-1-1tn-yen-loss-openai-flat-power-equipment.png --- # SoftBank lost ¥1.1tn: no gain on OpenAI, US$3.7bn written off on power equipment *SoftBank's results for July to September: the ¥1,115.3bn loss line by line, why a flat OpenAI valuation moves its numbers so much, the power-equipment write-off, and net asset value.* Analysis · Markets & the AI economy · By TechBag · Published 2026-11-10 · Facts checked 2026-11-10 · Canonical: https://www.thetechbag.com/blog/softbank-1-1tn-yen-loss-openai-flat-power-equipment The short version 1. SoftBank Group lost ¥1,115.3bn (about US$7.0bn) in July–September, against a profit of ¥2,502.2bn a year earlier. The year-ago quarter carried a ¥2,156.3bn gain on OpenAI. This quarter OpenAI’s valuation did not change.[1][2] 2. Inside the quarter, two lines made the loss: ¥597.2bn (US$3.73bn) written off on power equipment for US AI data centres, and finance cost of ¥461.9bn, up from ¥174.7bn.[1] 3. The “¥1.7tn investment gain” in SoftBank’s summary is the six months, and mostly Intel. The quarter’s investment line was a loss of ¥133.6bn. Net asset value was ¥72.3tn in June, ¥59.8tn in September and ¥44.7tn at 9 November prices.[1][2] SoftBank’s profit depends on the paper value of a handful of holdings, so a single quarter can swing by trillions of yen without anyone having sold anything. This piece reads the company’s report of 10 November to answer four questions: what drove the loss, why one unchanged valuation matters so much, what writing off power equipment says about the build plan as SoftBank states it, and why the quarter, the half-year and net asset value each tell a different story. ## Quarter and half-year are two different results SoftBank’s financial year starts in April, so its second quarter is July to September. The company’s summary leads with the half: a ¥1.7tn investment gain and a ¥0.8tn net loss.[2] All of that gain came in April to June, when the investment line was ¥1,859.4bn. In July to September it was minus ¥133.6bn.[2] The half-year gain is also mostly one share. Intel contributed ¥1,062.8bn of the ¥1,725.8bn: a gain of ¥1,332.9bn in the first quarter, then a loss of ¥270.1bn in the second.[1][2] The bottom line splits the same way: ¥347.3bn of profit in the first quarter, ¥1,115.3bn of loss in the second, and a ¥768.0bn loss for the six months against a profit of ¥2,924.1bn a year earlier.[1][2] **Figure: For six quarters SoftBank's profit has moved with its investment line; this quarter both went below zero** *Net income attributable to owners and total gain or loss on investments, ¥ trillion, April 2025 to September 2026* | | Net income | Investment line | | --- | --- | --- | | Apr–Jun 25 | 0.42 | 0.49 | | Jul–Sep 25 | 2.5 | 3.44 | | Oct–Dec 25 | 0.25 | 0.29 | | Jan–Mar 26 | 1.83 | 3.07 | | Apr–Jun 26 | 0.35 | 1.86 | | Jul–Sep 26 | -1.12 | -0.13 | Source: SoftBank Group Q2 FY2026 earnings presentation, slides 14 and 15 · as of 10 November 2026 · The investment line is one component of net income; the other lines explain the gaps ## What drove the loss Gross profit of ¥1,143.4bn covered selling and administrative costs of ¥1,081.9bn with ¥61.5bn left over. Everything below that is financing, valuation and one-off items. Other losses came to ¥669.9bn, most of it the power-equipment charge. Finance cost was ¥461.9bn, more than two and a half times the year-earlier ¥174.7bn. The investment line took off another ¥133.6bn, and a foreign-exchange gain of ¥220.3bn gave part of that back. The pre-tax loss was ¥1,027.9bn.[1] **Figure: Gross profit barely covered running costs; the ¥597bn write-off and interest did the rest** *Main lines of the income statement for July to September 2026, ¥ billion, shown as absolute size with their direction marked* Gross profit adds 1,143.4 ¥bn Selling and admin costs subtracts 1,081.9 ¥bn Other loss, ¥597.2bn of it power equipment subtracts 669.9 ¥bn Finance cost subtracts 461.9 ¥bn Foreign-exchange gain adds 220.3 ¥bn Investment loss subtracts 133.6 ¥bn Derivative loss subtracts 41.7 ¥bn | | Value (¥bn) | | --- | --- | | Gross profit | 1,143.4 | | Selling and admin costs | 1,081.9 | | Other loss, ¥597.2bn of it power equipment | 669.9 | | Finance cost | 461.9 | | Foreign-exchange gain | 220.3 | | Investment loss | 133.6 | | Derivative loss | 41.7 | Source: SoftBank Group consolidated financial report, three-month statement of profit or loss · as of 10 November 2026 · Change in third-party interests (minus ¥2.6bn) omitted; the rows sum to the pre-tax loss The report explains the interest bill. SoftBank drew US$30.0bn of bridge loans in April and July, added a US$11.5bn margin loan on its Arm shares in December 2025, and carried more bonds at higher rates. When it repaid the remaining US$25.9bn of the bridge loans on 15 September, it recognised at once the unamortised costs it had planned to spread to March 2027.[1] It raised US$56.5bn in the quarter, which it calls a record, from borrowing (US$21.9bn), bonds (US$18.0bn) and what it calls asset monetisation (US$16.6bn).[2] One figure on SoftBank’s own slide should be read with care. It flags a ¥321.9bn derivative loss on forward contracts over its Intel shares, raised in August.[2] The quarter’s whole derivative line is only ¥41.7bn, because a ¥274.7bn gain in SoftBank’s other businesses offset most of it.[1] TechBag countTwo ways to read the same swing Net income moved by ¥3,617.5bn between the two quarters. The investment line alone moved by ¥3,573.3bn, from a gain of ¥3,439.7bn to a loss of ¥133.6bn. Everything else nets to about ¥44bn: the larger write-off and interest bill were offset by lower payouts to fund investors, foreign-exchange gains, lower tax and smaller minority interests.[1] So against a year ago the story is valuations; within this quarter’s own loss, it is the write-off and the interest. Our arithmetic on the report’s figures. ## Why one flat valuation matters so much ¥0 gain or loss on SoftBank's OpenAI stake, July to September In the same three months of 2025, the stake produced a gain of ¥2,156.3bn. The report is plain: “The valuation was unchanged from the previous fiscal year-end,” and “No investment gain or loss was recorded on OpenAI” for the six months.[1] The Vision Fund deck says the same of the quarter.[3] A stake can grow without a gain. SoftBank paid in US$10.0bn on 1 April and US$10.0bn on 1 July, and each dollar raised cost and fair value equally, so the cumulative gain stayed at US$45.0bn.[1] **Figure: SoftBank's OpenAI stake: US$45.0bn of gain, unchanged since March** *Cumulative investment, fair value and gain at 30 September 2026, and investment after the final tranche on 1 October* US$54.6bn Invested at 30 September Net of disposals US$99.6bn Fair value at 30 September SoftBank US$45.0bn Cumulative gain, same since March SoftBank US$64.6bn Invested after 1 October, about 13% of OpenAI SoftBank Source: SoftBank Group consolidated financial report; Q2 FY2026 earnings presentation · as of 10 November 2026 · About 13% on SoftBank's stated basis, including all preferred shares from OpenAI's US$122bn round Three things make that zero count. The first is the comparison: the ¥2,156.3bn gain of a year earlier was about 63% of that quarter’s ¥3,439.7bn investment line, in a quarter of ¥2,502.2bn net profit.[2] The second is the weight of the position: OpenAI was 21% of SoftBank’s equity value of holdings on 30 September, up from 17% on 30 June.[2] The third is the debt tied to it. In August a subsidiary of Vision Fund 2 borrowed US$10.0bn under an agreement with a cash collateral provision and a mandatory prepayment clause, which “may be triggered under certain circumstances such as a significant decrease in the fair value of the OpenAI preferred shares”. SoftBank guarantees it and counts it as its own debt, and says the OpenAI shares themselves are not pledged.[1][2] TechBag countVision Fund 2 without OpenAI Since inception, Vision Fund 2 shows a gross gain of US$21.8bn on a cost of US$122.6bn. OpenAI’s US$45.0bn gain is inside that figure. Remove it and the rest of the fund cost US$68.0bn and has returned or is worth US$44.8bn, a gross loss of US$23.2bn. Our arithmetic on SoftBank’s figures; the deck gives both totals.[2] The mark stood still while OpenAI’s reported business moved: SoftBank’s presentation cites annualised revenue of about US$50bn at September, up more than 70% over July to September, from a post by OpenAI’s finance chief.[2] SoftBank’s report lists market comparables, cash-flow models and recent transactions as its methods for private companies, without saying which set this valuation.[1] ## US$3.73bn of power equipment, and the plan behind it The largest one-off charge of the quarter is a change of plan. Silver Bands 7 (SB7), a subsidiary funded by SoftBank and Vision Fund 2, reserved factory capacity and bought power-generation equipment for US AI data centres, including the PORTS-Pike campus in Pike County, Ohio. SoftBank says it made these “bridge investments in advance” to secure equipment “in anticipation of shortages”, and expects to recover them through project financing.[1][2] **Figure: SoftBank paid US$9.48bn for power equipment, then wrote off US$3.73bn when the plan changed** *SB7's advance payments and the loss recorded, from the year to March 2026 through 30 September 2026* 1. 01Buy aheadUS$9.48bn paid to reserve capacity and buy equipment: US$3.9bn in the year to March, US$5.6bn since. 2. 02Revise the planSB7 changed its procurement strategy “given the evolving requirements of its existing and planned projects”. 3. 03Write off¥597.2bn loss: ¥457.0bn of non-refundable advances and ¥140.2bn of contract changes and settlements. 4. 04What remainsUS$6.6bn of advances still on the books. Rebates of up to US$2.1bn over 10 years, not booked. Source: SoftBank Group consolidated financial report; Q2 FY2026 earnings presentation, slides 16 to 18 · as of 10 November 2026 · US$2.85bn of the loss had already been paid; US$0.88bn is contract changes and settlements The rebates are conditional and apply to future equipment purchases, and SoftBank did not record them as an asset because it could not determine the amount.[1] It does not say which equipment or suppliers are affected. The slides add one detail: the change followed “a review of the project portfolio”.[2] The write-off landed in the same quarter as the largest lease in that portfolio. On 17 August SoftBank’s group signed a 20-year agreement with OpenAI for the full 8.0 GW-IT at PORTS-Pike, which SoftBank lists as preparing for construction; it plans to fund such projects with project finance that does not reach back to the parent.[2] SoftBank’s account has the site contracted and the equipment plan for it and other projects revised, in the same three months. Its next plan, announced a day before these results, is a staged investment [in Malaysia with Grab](https://www.thetechbag.com/blog/grab-750m-malaysia-ai-data-centres-softbank). ## Up ¥20tn since March, down ¥15tn since September SoftBank reports its value as net asset value (NAV): its holdings less net debt. Its headline says NAV was ¥59.8tn on 30 September, up about ¥20tn from March.[2] That is true, and it hides the path: NAV was ¥40.1tn on 31 March, ¥72.3tn on 30 June and ¥59.8tn on 30 September. SoftBank also gives a pro forma at 9 November prices of ¥44.7tn, ¥27.6tn below June.[2] **Figure: Arm's share of net asset value drove the rise and the fall: ¥43.4tn in June, ¥18.6tn at 9 November prices** *SoftBank's net asset value by holding, ¥ trillion, at quarter ends and on its 9 November pro forma* 31 Mar 2026 15.9 17.9 40 ¥tn 30 Jun 2026 43.4 20.8 72.3 ¥tn 30 Sep 2026 32.1 20.6 59.9 ¥tn 9 Nov, pro forma 18.6 19.7 44.7 ¥tn | | Arm | Vision Funds | SoftBank Corp. | Other | | --- | --- | --- | --- | --- | | 31 Mar 2026 | 15.9 | 17.9 | 2.4 | 3.8 | | 30 Jun 2026 | 43.4 | 20.8 | 2.4 | 5.7 | | 30 Sep 2026 | 32.1 | 20.6 | 2.9 | 4.3 | | 9 Nov, pro forma | 18.6 | 19.7 | 2.7 | 3.7 | Source: SoftBank Group Q2 FY2026 earnings presentation, slide 20 and the NAV definitions · as of 10 November 2026 · Pro forma uses 9 November prices for Arm, SoftBank Corp. and Intel, and 30 September prices for other listed shares NAV and the income statement describe different things. Changes in the value of shares in consolidated subsidiaries, “including Arm and SoftBank Corp.”, are not recorded in the consolidated income statement.[1] So Arm’s fall since June does not appear in this quarter’s loss, while OpenAI’s flat value does. Loan-to-value, SoftBank’s debt measure, was 15.9% on 30 September against a policy of staying below 25% in normal circumstances, and its cash position of ¥5.0tn exceeds the ¥1.6tn of bonds due over two years.[2] Our viewWhat to watch Three markers in SoftBank’s own disclosures: whether OpenAI’s valuation moves in the December quarter, now that the final US$10.0bn is in; what happens to the US$6.6bn of advances still on SB7’s books and the rebates that are not; and loan-to-value at the next quarter end against the 25% line, given where Arm stood on 9 November. In India: Lenskart and Meesho are among the named gains, on a small base SoftBank’s report names Meesho and Lenskart among the public companies behind Vision Fund 2’s gains for the six months, and Lenskart with PayPay for the quarter alone.[1] Its tables at 30 September show Lenskart at a cost of US$225m and a gross return of US$1,506m (6.7 times), and Meesho at US$285m and US$927m (3.3 times).[2] Swiggy sits at cost (US$450m and US$451m) and Ola Electric below it (US$556m and US$370m).[2] The combined gain on Lenskart and Meesho, US$1.92bn on our arithmetic, compares with US$45.0bn on OpenAI. The presentation names no Indian data-centre project: the AI infrastructure it lists is in Ohio, Texas, France and Malaysia.[2] Nothing here changes what an Indian software buyer pays; what it shows is which Indian listed holdings SoftBank reports at a gain. How we did this Figures as of 10 November 2026, 7:30pm IST All figures are SoftBank Group’s own, from its consolidated financial report for the six months to 30 September 2026, its earnings presentation and its Vision Fund briefing, all dated 10 November. Dollar equivalents are SoftBank’s, at its stated rates. Our arithmetic, labelled where it appears: gross profit less selling and administrative costs, the year-on-year swing, OpenAI’s share of the year-ago investment line, Vision Fund 2 without OpenAI, the NAV changes between dates, and the combined Indian gains. That new money raised fair value by the amount invested is derived from the unchanged US$45.0bn gain. NAV components are SoftBank’s apportioned figures, rounded, so two totals in the chart differ by ¥0.1tn from the reported ¥40.1tn and ¥59.8tn. Vision Fund cost and return are on SoftBank’s segment basis; its fund-level deck shows slightly different totals. Spotted an error? Write to us; corrections are published at the foot of the piece. Sources 1. [SoftBank Group: Consolidated Financial Report for the six-month period ended 30 September 2026](https://group.softbank/media/Project/sbg/sbg/pdf/ir/financials/financial_reports/financial-report_q2fy2026_01_en.pdf) — 10 November 2026 2. [SoftBank Group: Q2 FY2026 Earnings Results presentation](https://group.softbank/media/Project/sbg/sbg/pdf/ir/presentations/2026/earnings-presentation_q2fy2026_01_en.pdf) — 10 November 2026 3. [SoftBank Vision Funds: Earnings Investor Briefing for Q2 FY2026](https://group.softbank/media/Project/sbg/sbg/pdf/ir/presentations/2026/investor-svf_q2fy2026_01_en.pdf) — 10 November 2026 **Disclosure.** TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view. **Read this next:** [Big Tech raised a net US$272bn in nine months; buybacks fell 83%](https://www.thetechbag.com/blog/big-tech-borrows-sells-shares-for-ai) — The same funding question at the four largest AI spenders: a net US$272bn raised from borrowing and share sales in nine months, as buybacks fell 83%. Go deeper on TechBag - [Grab to put US$750m into Malaysian AI data centres](https://www.thetechbag.com/blog/grab-750m-malaysia-ai-data-centres-softbank) — SoftBank's next AI-infrastructure plan, with US$1bn of proposed seed capital - [China barred SoftBank's ABB Robotics deal only in China](https://www.thetechbag.com/blog/softbank-abb-robotics-china-only-ban) — the other open item in SoftBank's report, and what remains of the US$5.375bn deal - [Big Tech's quarterly capex hit US$202bn](https://www.thetechbag.com/blog/big-tech-ai-capex-quarterly-line) — the data-centre spending that SoftBank's power equipment was bought to serve