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SoftBank Stock Plunges Over 11% After OpenAI Rules Out 2026 IPO
Shares of SoftBank Group Corp. plunged on Monday after OpenAI CEO Sam Altman stated the artificial intelligence leader will not pursue an initial public offering in 2026, delaying a key potential windfall for the Japanese technology investor.
Market Reaction
SoftBank's stock (TYO:9984) tumbled more than 11% to 5,795.0 yen, making it one of the worst performers on Japan's Nikkei 225 index, which slid 2% amid a broader technology sell-off, according to market data reported by Investing.com. The sharp decline reflects investor concern over the timeline for monetizing SoftBank's substantial stake in the highly-valued AI firm.
Delayed Payoff for a Major Bet
The comments from Altman, reportedly made in a magazine interview, directly impact SoftBank's strategy. The investment group has committed over $60 billion to OpenAI, financing the bet with significant debt, including bridge loans collateralized by its other holdings, the report noted.
AdAn IPO was widely seen as a path for SoftBank to generate strong and immediate returns on its investment, particularly given the high valuations OpenAI has commanded in private fundraising rounds. The removal of a 2026 listing from the table introduces significant uncertainty about when and how SoftBank will realize gains from its major AI venture.
Broader AI Headwinds
The news comes as prominent figures in the AI industry, including Anthropic CEO Dario Amodei, have called for a slowdown in development, citing potential risks. These calls have reportedly been supported by Altman, as well as by Elon Musk and Google DeepMind's Demis Hassabis.
A potential deceleration in the AI race could create further headwinds for SoftBank. Its portfolio includes the chip designer Arm, whose valuation has been heavily boosted by demand for AI-powering semiconductors. Despite Monday's sharp drop, SoftBank shares remain up nearly 26% year-to-date in 2026.
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