SoftBank Group Corp. shares fell sharply on Friday after a Financial Times report raised questions about the profitability of OpenAI, one of the company’s key AI holdings. The report prompted investor concerns about the pace of AI monetization and the returns on SoftBank’s substantial investments in the sector.
The Financial Times said OpenAI’s annualized revenue was about $50 billion as of September. That was $20 billion below figures previously communicated to the market.
SoftBank shares fell as much as 7.3% in Tokyo trading. They recovered slightly to close down around 4%.
SoftBank holds an approximately 13% stake in OpenAI. The investment was financed in part through a significant high-yield bond issuance. The sell-off underscored investor sensitivity to SoftBank’s major technology bets and the financial risks of its aggressive AI investment strategy.