SoftBank Unleashes Twin AI Offensive: $10B OpenAI Tranche and 10-GW US Cloud Push

SoftBank launches SB Neo cloud subsidiary targeting 10GW capacity and releases $10B OpenAI tranche, boosting shares 7% despite debt concerns.

SoftBank is executing a two-pronged strategy to cement its position atop the artificial-intelligence food chain, even as its own stock price swings wildly and debt levels pile up. The Japanese conglomerate has simultaneously released a second $10 billion tranche for OpenAI and unveiled plans for a new US-focused cloud subsidiary, SB Neo, that targets a staggering 10 gigawatts of data center capacity by 2030.

The flurry of activity sent SoftBank shares surging 7.24% on Thursday to €33.99, marking the strongest single-day rebound in weeks. That came after a brutal stretch in which the stock had shed 28.24% over the prior 30 days and another 7.37% in the past week alone. The bounce signals that investors see the SB Neo venture as a credible step toward monetizing the AI infrastructure buildout, even if the road ahead remains uncertain.

A Cloud Business Built From the Ground Up

SB Neo, a joint venture between SoftBank Group and its telecom arm SoftBank Corp., will be formally incorporated this month. Its mission: lease AI compute capacity to US enterprises, including hyperscale cloud operators. The service is slated to go live during the fiscal year ending March 2028, with capacity to be added in phases. The 10-GW target — enough to power millions of homes — underscores the scale of demand SoftBank sees for training and running large language models.

The US push builds directly on soft-launch experience in Japan. Since May 2026, SoftBank Corp. has been running a beta GPU cloud service there, powered by its in-house “Infrinia AI Cloud OS.” That learning will now accelerate the American rollout. “The entire group is working together to build world-class AI infrastructure and drive the AI revolution,” CEO Masayoshi Son said in a statement.

Putting $65 Billion Into OpenAI — on Credit

Separately, SoftBank has triggered the second installment of its massive follow-on investment in OpenAI. The $10 billion flows through Vision Fund 2 and is part of a previously committed $30 billion total that will lift the Japanese group’s overall stake to roughly $65 billion — representing about 13% of the ChatGPT developer.

Perhaps more striking than the size of the bet is how it is being financed. SoftBank is not dipping into its own cash pile. Instead, it is drawing on a $40 billion bridge facility arranged by a banking syndicate led by JPMorgan, Goldman Sachs and Mizuho. The unsecured loan matures in March 2027, meaning SoftBank must either sell assets or refinance before then. Each OpenAI tranche — the third is due in October 2026, or earlier if OpenAI goes public — adds to the urgency of that repayment clock.

In exchange for its capital, SoftBank receives preferred shares in OpenAI that will automatically convert into common stock at any initial public offering. Until a market price emerges, however, the private startup’s valuation swings will flow directly into SoftBank’s profit-and-loss statement each quarter, injecting fresh earnings volatility.

Volatility as a Constant Companion

Thursday’s rally did little to erase the damage of the past month. The stock still trades well below its level 30 days ago, and the annualized 30-day volatility of 110.8% testifies to the market’s jitters. The 14-day relative strength index sits at 45.7, a neutral reading that leaves room for a move in either direction.

Investors now face two critical unknowns. How quickly can SB Neo scale toward its 10-GW ambition, and will the cash burn from the OpenAI stake and the broader AI buildout ultimately soothe — or exacerbate — concerns about SoftBank’s swelling debt load? The answers will come in the quarterly earnings reports and the construction milestones of SB Neo’s US data centers. For now, SoftBank is placing its biggest bets yet on faith that the AI revolution will pay off before the bridges need to be crossed.