Key Takeaways
- Shares of SoftBank plummeted more than 11% on Monday, closing at 5,795.0 yen and ranking among the Nikkei 225’s weakest performers
- Sam Altman, CEO of OpenAI, announced the artificial intelligence firm will not go public in 2026
- Dario Amodei, head of Anthropic, urged the industry to decelerate AI progress due to potential threats to society
- The Japanese investment giant arranged a fresh $11.87B loan over two years from approximately 20 financial institutions to back its OpenAI position
- By October, SoftBank aims to have deployed close to $65B into OpenAI, having already mobilized roughly $37B during this year
SoftBank Group (TYO: 9984) experienced a steep decline on Monday, with shares sliding over 11% to settle at 5,795.0 yen. The drop positioned it among the most significant decliners on the Nikkei 225 index, which itself retreated 2% during the trading session.
The dramatic market reaction followed comments from Sam Altman, who leads OpenAI, stating in a recent publication that his company has no intention of launching an initial public offering during 2026. This revelation struck particularly hard for SoftBank, which has staked enormous resources on the AI developer’s trajectory.
An IPO would have represented a swift path to substantial gains for SoftBank on its OpenAI holdings. The artificial intelligence company achieved remarkable valuations throughout fundraising activities conducted earlier in the year, elevating expectations around a potential market debut.
Under the leadership of billionaire founder Masayoshi Son, SoftBank has pledged approximately $65B toward OpenAI and has successfully secured about $37B in capital during 2026 to support this enormous commitment.
Mounting Debt Burden Intensifies Concerns
Funding this ambitious wager has required SoftBank to shoulder substantial borrowing, including interim financing arrangements collateralized by its existing investment portfolio.
The conglomerate disclosed last week its intention to settle $25.9B of a $40B credit facility initially secured this year for OpenAI funding purposes. This repayment obligation comes due on September 15.
Additionally, a new $11.87B financing package spanning two years has been completed, drawing from commitments made by roughly 20 banking partners. This amount surpassed SoftBank’s initial target of $10B, as reported by Bloomberg.
The company is simultaneously exploring a U.S. dollar-denominated bond offering potentially reaching $20B, plus a separate $10B margin facility secured against its OpenAI ownership stake.
Growing AI Safety Debate Compounds Market Anxiety
The postponed listing wasn’t the sole catalyst behind Monday’s market turbulence. Dario Amodei, who runs Anthropic, issued a public statement advocating for reduced velocity in artificial intelligence advancement, highlighting concerns about the technology’s breakneck evolution.
Prominent industry figures endorsed his stance, including Elon Musk of SpaceX and Demis Hassabis, who leads Google DeepMind. OpenAI itself expressed alignment with Amodei’s perspective.
For SoftBank, any deceleration in AI advancement presents multiple challenges. Its semiconductor design unit Arm has experienced substantial growth driven by AI-fueled chip demand. Any shift in this dynamic could negatively impact Arm’s market value, which represents a critical asset within SoftBank’s investment empire.
A more general slowdown across the AI sector would similarly create headwinds for SoftBank’s extensive technology investment portfolio.
Notwithstanding Monday’s significant selloff, SoftBank shares remain approximately 26% higher year-to-date in 2026.
According to last week’s disclosure, SoftBank projects its total OpenAI investment will reach nearly $65B by October, with its next critical financial hurdle being the September 15 loan settlement deadline.
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