TOKYO – SoftBank Group Corp. saw its shares plummet over 13% on Monday on the Tokyo Stock Exchange, a significant drop that pushed its market capitalization down to 33.316 trillion Japanese Yen. The sharp decline, to 6540 Japanese Yen from a previous close of 5678 Japanese Yen, reflects growing investor anxiety surrounding the pace and safety of artificial intelligence development, coupled with concerns about SoftBank’s aggressive AI investment strategy.
AI Safety Concerns Intensify Scrutiny
The sell-off was largely triggered by recent statements from the leadership of Anthropic PBC and OpenAI, who urged developers to exercise greater caution and potentially slow down the advancement of sophisticated AI systems. These calls for restraint come amid rising safety concerns, which have cast a shadow of uncertainty over the future trajectory of the AI industry. SoftBank, a major backer of OpenAI with investments expected to reach $65 billion by October, is particularly vulnerable to shifts in investor sentiment regarding AI valuations and future prospects.
Masayoshi Son's Vision and Financial Leverage
Adding to investor worries is founder and CEO Masayoshi Son's unwavering conviction in AI's long-term potential. Son has championed numerous multi-billion-dollar AI initiatives despite often uncertain timelines for generating substantial revenue. He has also publicly dismissed concerns about a potential AI bubble as “ignorant,” leaving SoftBank exposed to significant market value fluctuations.
The company is simultaneously increasing its financial leverage to fund ambitious expansion plans. SoftBank intends to raise ¥1 trillion ($6.5 billion) through a retail bond offering and has secured a $10 billion loan, reportedly backed by its OpenAI shares. This fresh capital is earmarked for major investments and acquisitions, including planned purchases of ABB Robotics and DigitalBridge, alongside efforts to build a broader AI infrastructure ecosystem by developing data centers globally.
OpenAI IPO Delay and Security Breaches
Further exacerbating investor concerns, both Anthropic and OpenAI recently indicated they would take steps to curb the development of cutting-edge AI models following a series of troubling security breaches. Separately, OpenAI co-founder Sam Altman confirmed that the company has no plans for a public offering in 2026, removing a potential near-term catalyst that many major investors, including SoftBank, might have anticipated.
With SoftBank’s fortunes increasingly tied to the volatile AI investment cycle through its OpenAI holdings, infrastructure projects, acquisitions, and debt-funded bets, investors are now carefully weighing the immense long-term opportunities in AI against the inherent risks of high valuations, uncertain monetization paths, and rising financial leverage.