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SoftBank to face scrutiny of AI strategy at second-quarter earnings after selloff

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SoftBank to face scrutiny of AI strategy at second-quarter earnings after selloff

Business News Tech AI SoftBank to face scrutiny of AI strategy at second-quarter earnings after selloff

SoftBank to face scrutiny of AI strategy at second-quarter earnings after selloff

SoftBank Group is on the brink of unveiling its quarterly earnings, navigating a turbulent landscape marked by challenges in the artificial intelligence sector and looming regulatory issues. The company's heavy investments in AI, alongside setbacks like a thwarted acquisition, have sparked skepticism among investors. Predictions indicate earnings could be highly unpredictable, with net profit estimates varying significantly, highlighting ongoing financial instability.

SoftBank Group reports quarterly earnings on Tuesday, with investors wondering how much reassurance it will offer about its strategies amid a rout in AI stocks and after its takeover of ABB 's robotics unit was blocked by China. The Japanese tech investment firm's big bets on artificial intelligence - particularly the $64.6 billion it has spent on a 13% stake in OpenAI - have raised questions about how well it will be able to weather setbacks for the sector. The Democratic Party's sweeping success in US midterm elections has heightened expectations of regulatory scrutiny and delays to building data centres, increasing scepticism about returns for AI industry.

"The near-term buildout and how exactly everything is going to be financed, whether it can be energized, where it will be deployed, are questions that were much easier to answer six months ago than today," said Rolf Bulk, head of semiconductors and infrastructure at research firm Futurum Group. The health of the AI industry has huge implications for SoftBank, which has made investments across AI model developers, data centre infrastructure, semiconductors and robotics.


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