SoftBank's stock dropped nearly 10% as investor confidence wanes following setbacks in its OpenAI investment, exacerbated by a negative credit outlook.
SoftBank experienced a significant decline in its stock price, falling by 9.8% on March 9, a drop that starkly contrasts with the broader Japanese stock market's performance. This downturn was largely influenced by OpenAI and Oracle's decision to halt plans for their joint data center in Texas, part of the Stargate initiative, as reported by the Financial Times.
Over the past four months, SoftBank's shares have plummeted nearly 50%, signaling growing investor skepticism regarding the company's substantial investment in OpenAI, the developer of ChatGPT.
In December 2025, SoftBank completed a $41 billion investment deal with OpenAI, bringing its total exposure to the AI startup to $64.6 billion. However, the anticipated growth from this investment has been hindered by OpenAI's decision to cut spending by $800 billion after the Stargate initiative failed to gain traction. The venture struggled with fundamental issues such as leadership appointments and funding allocations.
Negotiations between OpenAI executives and SoftBank's CEO Masayoshi Son over the development of the flagship Texas campus have also been fraught, with no resolution reached on key aspects of the project. Although OpenAI considered pursuing the project independently, it faced funding challenges from potential lenders.
Credit Rating Concerns
Compounding these challenges, S&P has assigned a negative outlook to SoftBank's credit rating, citing the high volume of illiquid assets within its $320 billion investment portfolio. This situation complicates SoftBank's ability to secure additional financing for its OpenAI investments.
To bolster its investment capacity, SoftBank has divested parts of its holdings, including $5.8 billion in Nvidia shares and a $9.1 billion stake in T-Mobile in 2025. Analysts suggest that Son's tendency to become overly optimistic about specific sectors may lead to increased leverage, which can backfire, as seen in past investments like WeWork.
Beyond its commitment to OpenAI, SoftBank has also recently invested over $9 billion in robotics and digital infrastructure. In February 2025, it partnered with OpenAI to establish a joint venture in Japan aimed at providing AI services to corporate clients.
