SoftBank Group shares declined on Wednesday after new reports raised concerns about the rapidly increasing costs at OpenAI, one of the Japanese technology group’s largest investments.
SoftBank stock fell as much as 5% to 6,730 yen before recovering part of its losses. The shares were later down approximately 3.1%, underperforming the Nikkei 225, which gained 0.7%.
OpenAI Cash Burn Triples in Early 2026
OpenAI’s cash burn reportedly tripled from a year earlier to $3.7 billion during the first three months of 2026.
Although quarterly revenue also increased threefold to $5.7 billion, the artificial intelligence company continued to face profitability challenges.
Operating advanced AI models requires significant spending on computing infrastructure, data centres and other technology resources. These costs have continued to weigh heavily on OpenAI’s financial performance.
OpenAI Losses Surge During 2025
Separate reports indicated that OpenAI’s annual loss climbed nearly eightfold to $39 billion in 2025. The company generated approximately $13 billion in revenue during the same period.
After excluding one-time expenses, OpenAI reportedly recorded an adjusted loss of around $8 billion.
The figures have increased investor concerns about whether the company can control its costs while continuing to develop increasingly powerful AI systems.
SoftBank Loan Plan Faces Difficulties
SoftBank has also reportedly struggled to secure a $6 billion margin loan backed by its OpenAI investment.
Efforts to raise the financing had stalled amid growing uncertainty over OpenAI’s valuation. The AI startup raised capital in February at a reported valuation of $852 billion.
Questions surrounding that valuation have intensified as investors examine OpenAI’s rising expenses, continued losses and long-term path toward profitability.
Lower AI Prices Add to Financial Concerns
OpenAI reportedly plans to significantly reduce the prices of some of its artificial intelligence services.
Lower prices could help the company attract more users and strengthen its competitive position. However, the strategy may also place additional pressure on revenue margins while operating costs remain high.
This has created further uncertainty over OpenAI’s ability to balance growth, affordability and profitability.
SoftBank Has Committed More Than $60 Billion
SoftBank has made OpenAI a central part of its artificial intelligence investment strategy, committing more than $60 billion to the company.
The value of SoftBank’s original investment has increased sharply. However, investors are becoming more cautious about the size of the group’s exposure to OpenAI.
Any decline in OpenAI’s valuation could therefore have a significant effect on SoftBank’s investment portfolio and market outlook.
Anthropic Increases Competitive Pressure
Concerns have also grown following major advances by OpenAI rival Anthropic.
Anthropic has reported progress in advanced AI models and enterprise-focused services. These developments have raised questions about OpenAI’s ability to maintain its position in the increasingly competitive artificial intelligence market.
Competition between leading AI developers is also forcing companies to invest heavily in computing power, research and product development.
OpenAI IPO Could Give SoftBank an Exit Option
OpenAI reportedly submitted a confidential filing for an initial public offering last week.
A successful OpenAI IPO could provide SoftBank with an opportunity to sell part of its stake or convert some of its paper gains into realized profits.
However, the potential market listing may also bring greater scrutiny of OpenAI’s spending, losses, valuation and future business strategy.
