SoftBank Group Corp. shares fell sharply on Monday, extending a steep decline from last week and hitting their lowest point in more than a month as uncertainty around OpenAI's prospective initial public offering continued to pressure the stock.
The shares fell as much as 5.3% to ¥5,899, following a more than 12% drop on Friday that came after media reports said OpenAI might postpone its IPO. Those reports, citing people familiar with the matter, indicated OpenAI could push a public listing out until 2027 or later because advisers are concerned current market conditions may be insufficient to support the company’s targeted valuation. The accounts added that Chief Executive Sam Altman remains reluctant to proceed with an offering at a lower valuation.
For SoftBank, the prospect of a delayed listing clouds expectations for a material liquidity event tied to its OpenAI holdings. The Japanese technology investment group has become one of OpenAI's largest backers through multiple funding rounds and commitments to AI infrastructure, and investors had factored a public offering into estimates of when value from those investments might crystallize.
The recent weakness marks a reversal from earlier strength this year, when optimism about artificial intelligence and founder Masayoshi Son's aggressive deployment of capital helped lift the shares. Son has publicly rejected the suggestion that AI valuations have reached bubble levels, arguing the technology is still in an early phase and offers meaningful long-term growth potential.
Market participants have also taken the selloff as part of a broader reassessment of AI-linked companies. With some investors questioning lofty valuations and the expected timing of returns on heavy investments in AI infrastructure, caution has spread across stocks tied to the sector and to firms with concentrated exposure to private AI ventures.
Market context
- SoftBank's stock experienced a one-day decline of as much as 5.3% to ¥5,899 on Monday.
- Reports that OpenAI may delay its IPO until 2027 or later have been cited as a key trigger for renewed selling pressure.
- Investor expectations for a near-term liquidity event related to SoftBank's OpenAI stake have been tempered by the possibility of a postponement.