SoftBank Group shares fell sharply on Monday, extending the previous session’s losses as uncertainty surrounding OpenAI’s potential initial public offering continued to unsettle investors.
The Japanese technology investment group dropped to its lowest level in more than a month, highlighting growing concerns about the value and timing of its major artificial intelligence investments.
SoftBank Shares Fall More Than 5%
SoftBank shares declined by as much as 5.3% to ¥5,899 during Monday’s trading session.
The latest drop followed a fall of more than 12% on Friday after reports suggested that OpenAI could delay its highly anticipated stock market listing.
The two-day selloff has placed renewed pressure on SoftBank’s share price after a strong rally earlier in the year.
OpenAI Could Delay Its IPO Until 2027
According to media reports citing people familiar with the matter, OpenAI is considering postponing its IPO until 2027 or later.
Advisers are reportedly concerned that current market conditions may not support the artificial intelligence company’s targeted valuation.
OpenAI Chief Executive Sam Altman is also said to be reluctant to proceed with a public listing at a significantly lower valuation.
However, no final decision on the timing of the IPO has been announced.
Delayed OpenAI Listing Weighs on SoftBank
A potential delay would create additional uncertainty for SoftBank, which has become one of OpenAI’s largest investors.
The Japanese company has built its exposure through several funding rounds and major commitments to artificial intelligence infrastructure.
Investors had viewed an OpenAI IPO as an important liquidity event that could help establish a clearer market value for SoftBank’s investment.
A later listing could delay that opportunity and make it more difficult for shareholders to assess the potential returns from SoftBank’s AI strategy.
SoftBank’s Strong AI Rally Reverses
The latest decline represents a significant reversal for SoftBank shares.
The stock had previously rallied on optimism surrounding artificial intelligence and founder Masayoshi Son’s aggressive investment strategy.
Son recently rejected claims that AI company valuations had entered bubble territory.
He argued that artificial intelligence remains in the early stages of development and could generate substantial long-term growth.
Investors Reassess AI Stock Valuations
SoftBank’s selloff also reflects wider caution toward companies linked to the artificial intelligence sector.
Investors are increasingly questioning whether high AI valuations can be justified by near-term earnings and cash flow.
Concerns are also growing about how long it will take for companies to generate meaningful returns from the large amounts being invested in data centers, chips and other AI infrastructure.
As a result, uncertainty over OpenAI’s IPO has become another test of investor confidence in SoftBank’s broader artificial intelligence strategy.
