The selloff adds to investor concerns around SoftBank’s aggressive push into AI, particularly as founder Masayoshi Son continues to commit billions of dollars to the sector while taking on additional debt to fund those investments.
SoftBank is among OpenAI’s largest financial backers, with its total investment in the ChatGPT maker expected to approach $65 billion by October. The Japanese technology investor has also been pursuing several other large AI-related bets, while exploring the development of data centres across multiple markets.
The latest pressure follows comments over the weekend from Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman, who backed a more measured pace of development for the most advanced AI systems, citing safety concerns. Anthropic plans to introduce additional safeguards, including assessments by independent third parties, as it responds to concerns surrounding the risks associated with frontier AI.
The developments have raised fresh questions about the potential returns from the huge sums being invested in AI. SoftBank has been particularly exposed to those concerns given the scale of Son’s investments and the uncertain timeframe for some of its projects to generate meaningful revenue.
“There’s worry that OpenAI’s value may not be as high as previously expected,” said Yugo Tsuboi, chief strategist at Daiwa Securities. He added that investors were watching closely to assess how much the pace of AI development could slow.
SoftBank is also increasing its leverage as it funds its investment strategy. The company is planning a ¥1 trillion ($6.5 billion) retail bond sale and has arranged a $10 billion loan tied to its OpenAI stake. It is also financing transactions including the planned acquisitions of ABB Robotics and DigitalBridge.
The latest decline extends a broader retreat in SoftBank shares. The stock is down roughly 30% from its June peak, with concerns over a potential delay to OpenAI’s initial public offering adding to pressure. Investors have also been wary of intensifying competition across the AI industry and a series of security breaches and other unauthorised activities involving AI systems.Amodei has sought to reassure investors that a slower pace of frontier AI development would not necessarily translate into weaker spending or slower growth in the sector. However, uncertainty around the scale and timing of future AI investments continues to weigh on sentiment.
SoftBank had reported a profit for the June quarter, helped by gains from its holdings in Intel Corp. and ByteDance, the parent company of TikTok.
Meanwhile, OpenAI has said it will not pursue a public listing in 2026, with Altman saying the company will prioritise addressing AI safety concerns. Anthropic, in contrast, has selected Nasdaq for its proposed IPO, which could take place as early as next month, Bloomberg has reported.
With agency inputs
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