SoftBank will release its Q2 earnings report tomorrow, and the US stock market saw a 6% pre-market decline, seemingly indicating that the market hasn't bought into its $50 billion investment in Malaysia. SoftBank's stock has been declining recently, affected by the AI sell-off. It has fallen 59% from its June high, and then dropped another 3% intraday. Further complicating matters, OpenAI lowered its funding target from $30 billion, only raising $11 billion in its first round, and its valuation dropped from the initial $1.5 trillion to $1.25 trillion. SB Energy, deeply intertwined with OpenAI, has also had its IPO, with a $50 billion valuation and a planned $5 billion fundraising, postponed. Following the Democratic Party's victory in the midterm elections, many US cities have begun restricting AI data centers, further damaging market confidence. Therefore, SoftBank's reported $50 billion investment in Malaysia may not be expansion, but rather a search for a second base for AI computing power amid tightening US regulations. If you hold SoftBank stock, consider taking advantage of the earnings release to make some money. I think what we should really look at in tomorrow's earnings report is not how much profit they made on paper, but whether SoftBank still has enough cash and financing capabilities to continue this AI gamble.