SoftBank Shares Hit 25-Month Low as AI Spending Spree Rattles Investors

SoftBank shares tumble nearly 10% amid AI profitability fears, with Masayoshi Son doubling down on $60B OpenAI bet despite market skepticism and debt burden.

The selling pressure on SoftBank Group has intensified dramatically, with the stock plunging nearly 10 percent on Wednesday to close at €25.39. That single-day rout caps a brutal stretch that has wiped roughly 25 percent off the share price over the past month and almost 20 percent in the past week alone, as mounting doubts over the profitability of artificial intelligence investments send shockwaves through global markets.

Masayoshi Son’s vision of an AI-driven revolution is colliding head-on with investor skepticism. Weak quarterly reports from US tech heavyweights such as Alphabet have fueled concerns that the massive capital outlays required for AI infrastructure may not deliver returns anytime soon. As one of the sector’s most prominent backers, SoftBank has become a proxy for the entire industry’s risk, making it acutely vulnerable to this sudden shift in sentiment. Geopolitical tensions in the Middle East have only accelerated the flight from risk assets, compounding the pressure on the Japanese conglomerate’s stock.

Debt-Fueled Ambition Meets Market Reality

Undeterred by the sell-off, Son continues to double down on his bets. SoftBank recently wired a second tranche of $10 billion to OpenAI as part of a planned $30 billion commitment, with total financial pledges to the ChatGPT developer expected to exceed $60 billion. To fund this aggressive push, the group has secured a $40 billion bridge loan backed by 21 financial institutions, including newcomers First Abu Dhabi Bank and Standard Chartered, which together are taking on roughly $7 billion of the facility. The unsecured credit line carries an annual interest cost of about 6.14 percent, adding a significant financing burden to an already stretched balance sheet.

The company’s valuation now hinges precariously on two key holdings: chip designer Arm and its OpenAI stake. Analysts warn of growing concentration risk, as SoftBank’s portfolio becomes increasingly dependent on the fortunes of just a handful of AI-related assets. The high cost of capital in an environment where growth stocks are under intense scrutiny is weighing heavily on the group’s net asset value.

Building a Vertical Empire

While the stock suffers, Son is quietly reshaping SoftBank from a pure financial investor into an infrastructure operator. The US Federal Communications Commission has approved the acquisition of internet provider WideOpenWest, part of a broader strategy to build an integrated network of data centers and broadband connections. Closer to home, SoftBank’s telecom arm is in talks to acquire payment service SP.LINKS for around ¥100 billion ($625 million). Blackstone currently holds an 80 percent stake in the company, with Sony Bank owning the remainder. These moves aim to create a closed-loop ecosystem stretching from Arm’s chip designs all the way to consumer-facing financial applications.

Technical Signals and What Comes Next

With the relative strength index hovering near 31, the stock is approaching technically oversold territory, though that alone offers little comfort given the macro headwinds. All eyes are now on the quarterly results due in August 2026, when investors will scrutinize how much the financing costs are eating into net asset value. The market will also be looking for updates on a potential OpenAI initial public offering and details on SoftBank’s liquidity position as it continues to pour billions into its AI ambitions.