SoftBank Group shares fell sharply on Friday following reports that OpenAI may postpone its planned initial public offering until 2027.
A delay would push back a potentially significant liquidity event for SoftBank and other major investors in the artificial intelligence company.
SoftBank Shares Drop More Than 11%
SoftBank shares listed in Tokyo fell 11.3% to 6,317 yen by 01:06 GMT.
The decline followed a New York Times report that OpenAI was leaning toward delaying its highly anticipated stock market debut until next year.
SoftBank is one of OpenAI’s largest financial supporters. The Japanese investment group has participated in the company’s funding rounds and artificial intelligence infrastructure projects.
OpenAI Advisers Recommend Caution
According to the report, OpenAI’s advisers have encouraged CEO Sam Altman to approach the IPO process carefully.
The advisers reportedly pointed to volatile equity markets, the recent market performance of Elon Musk’s SpaceX and OpenAI’s continuing financial challenges.
These factors could make it harder for the ChatGPT developer to attract sufficient demand at its preferred valuation.
OpenAI Previously Considered 2026 Listing
OpenAI had reportedly explored completing its public listing during the third or fourth quarter of 2026.
The company was said to be seeking a valuation of up to $1 trillion. That would represent a substantial increase from its latest private valuation of approximately $730 billion.
However, current market conditions may make that ambitious target more difficult to achieve.
AI Valuation Concerns Weigh on IPO Plans
Investors have become increasingly cautious about whether artificial intelligence companies can justify their high valuations.
Heavy spending on computing infrastructure, data centres and model development has raised questions about profitability across the AI industry.
OpenAI’s advisers reportedly warned that these concerns, combined with unstable stock markets, could reduce demand for the offering.
OpenAI May Wait Until 2027
OpenAI executives are now reportedly considering two main options.
The company could proceed with an earlier listing at a lower valuation. Alternatively, it could wait until 2027 and continue pursuing its $1 trillion target.
According to the New York Times, OpenAI currently appears more inclined to delay the IPO than reduce its valuation expectations.
IPO Delay Could Affect SoftBank
A postponed listing would delay SoftBank’s opportunity to realise part of the value of its OpenAI investment through the public market.
It could also make investors wait longer for greater transparency regarding OpenAI’s revenue, spending and overall financial position.
For now, SoftBank shares may remain sensitive to further reports about OpenAI’s IPO timeline and the wider outlook for artificial intelligence valuations.
