SoftBank shares fall as OpenAI weighs delaying IPO to 2027

SoftBank shares fell sharply in Tokyo on Thursday after the New York Times reported OpenAI is leaning toward pushing its IPO to 2027, citing volatile markets and SpaceX's rocky post-IPO performance.forbes+1
OpenAI's advisers presented executives with the option of listing next year at a $1 trillion valuation or lowering the target to go public sooner, according to Reuters.reuters
SoftBank's OpenAI investment is set to reach roughly $65 billion by October, and S&P has already downgraded the firm's credit outlook to negative.reuters

SoftBank Group's stock fell sharply in Tokyo trading on Thursday after The New York Times reported that OpenAI is leaning toward postponing its initial public offering until 2027, rattling investors who had driven the Japanese conglomerate to record highs on expectations of a near-term listing.

The report, confirmed by Reuters, cited three people involved in OpenAI's deliberations who said advisors had presented executives with the option of waiting until next year to go public at a $1 trillion valuation, or lowering the target to list sooner. OpenAI's latest private valuation stands at $852 billion.forbes+1

A Reversal of Fortune

The selloff marks a dramatic reversal for SoftBank, which became Japan's most valuable company on June 1 after the Nikkei 225 surged past 67,000 for the first time on AI-fueled optimism. SoftBank had rallied roughly 70% year-to-date through early June as investors priced in the prospect of an OpenAI listing that would crystallize founder Masayoshi Son's largest-ever bet.reuters+1

OpenAI filed confidentially with the Securities and Exchange Commission on June 8, but stated at the time it had not decided on a timeline. The company's advisors have since grown more cautious, citing volatile stock markets and the rocky post-IPO performance of SpaceX, which retreated after its initial surge.investors+2

SoftBank's Exposure Deepens the Stakes

SoftBank's investment in OpenAI is slated to reach roughly $65 billion by October, with a further $30 billion in commitments over 2026. The scale of that exposure has already tested the company's balance sheet — S&P downgraded SoftBank's credit outlook to negative following its latest OpenAI funding round, and a $6 billion margin loan backed by the OpenAI stake stalled earlier this month after talks with creditors failed to progress.cryptonomist+2

PitchBook senior research analyst Harrison Rolfes had warned in early May that OpenAI's original fourth-quarter 2026 IPO target was "already ambitious," predicting the realistic window had shifted to mid-to-late 2027.tradingkey

The delay adds further uncertainty for SoftBank at a moment when its stock has already endured multiple sharp drawdowns this month tied to broader AI sector volatility and financing concerns.

Sources (36)