AI jitters hit tech stocks as SoftBank posts first net loss in nearly two years

SoftBank posted a net loss of ¥1.12 trillion ($71 billion) for its second fiscal quarter, its first quarterly net loss in nearly two years, reversing a year-earlier profit as AI spending and demand concerns hit its major holdings. The Vision Fund segment, which manages equity stakes in hundreds of tech startups, recorded an ¥81.6 billion loss, while share price declines at chipmakers Arm and Intel and Korean e-commerce firm Coupang dragged on overall results. SoftBank is increasingly viewed as a bellwether for sentiment toward OpenAI and the broader AI sector. Its shares have fallen more than 50% since hitting a record high in June, pressured by worries over debt raised to fund large-scale AI investments and by concerns that a sweeping Democratic win in the U.S. midterm elections could stall many of Masayoshi Son's projects.