SoftBank Shares Decline Amid $30B OpenAI Investment Talks
SoftBank Group Corp. (SFTBY) shares fell as reports surfaced of potential additional $30 billion investment in OpenAI. The move WOULD follow SoftBank's previous $41 billion commitment in 2025, which valued the AI giant at $300 billion. OpenAI's valuation has since surged to $500 billion in secondary markets, though neither party has confirmed ongoing negotiations.
Market skepticism centers on SoftBank's funding capacity, with negative free cash Flow of ¥787 billion raising questions about liquidity. The conglomerate's aggressive AI bets come as OpenAI's energy-intensive projects threaten to strain global infrastructure sectors. Analysts caution that while the potential payoff is significant, the risk profile may warrant investor hesitation.