Musk was absolutely right. SoftBank, led by Masayoshi Son, just released its second-quarter earnings report, showing its first quarterly loss in nearly two years, a staggering $7 billion. The reason behind this massive loss is indeed a default on some payments made for power equipment for a data center in Ohio, USA. The prepayments are non-refundable. Meanwhile, SoftBank's Vision Fund, touted as a super-strong competitive advantage, has turned from profit to loss. The market had expected a profit this quarter, but the decline in the share prices of its holdings in Arm, Intel, and Coupang dragged down its performance. Currently, two of Son's three AI initiatives—his US data center infrastructure plan, his semiconductor stock holdings, and his bet on OpenAI's IPO—have become recent drags on the company. Hopefully, Son can weather this storm.