SoftBank shares slide after report OpenAI may delay IPO until next year

SoftBank Group shares plummeted by over 12% on Friday after reports surfaced that AI powerhouse OpenAI is likely delaying its highly anticipated Initial Public Offering (IPO) until 2027. The primary sticking point? CEO Sam Altman unwavering demand for a colossal $1 trillion valuation, which financial advisors believe is unachievable in the current volatile tech market of 2026. This postponement hits SoftBank particularly hard, given its substantial investment in OpenAI, which is projected to reach approximately $65 billion by October. The Japanese conglomerate had been banking on OpenAI public debut as a crucial liquidity event to boost its market cap, especially after the recent record-breaking, yet ultimately shaky, IPO of Elon Musk's SpaceX served as a cautionary tale for tech market stability. Adding to the complexity, OpenAI continues to report significant net losses, despite impressive revenue figures, as it commits hundreds of billions to build out vast AI infrastructure, while its ChatGPT user growth has reportedly stalled. Now, all eyes are on 2027, as OpenAI leadership navigates the delicate balance between achieving its ambitious valuation goals and the prevailing market sentiment. For SoftBank, the delay transforms a potential near-term cash infusion into prolonged uncertainty, raising questions about its capital recycling strategy in a high-interest-rate environment. The ripple effects of this decision are expected to continue influencing investor confidence across the broader Artificial Intelligence sector and the Tokyo Stock Exchange.