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

SoftBank Group is set to face heightened scrutiny of its artificial intelligence strategy when it reports second-quarter earnings in Tokyo on Tuesday, with investors still rattled by a slump in AI stocks and by uncertainty around its stalled ABB robotics takeover. The Japanese firm’s AI bet—including $64.6 billion spent on a 13% stake in OpenAI—has left analysts questioning how it can absorb setbacks. Concerns are also tied to debt: at end-June, SoftBank reported net interest-bearing debt of 10.8 trillion yen. Shares have fallen sharply this year, while costs to insure its debt hit a four-year high.