LOADING...
SoftBank shares slide 13% amid reports of OpenAI IPO delay
SoftBank is one of OpenAI's major investors

SoftBank shares slide 13% amid reports of OpenAI IPO delay

Jun 26, 2026
09:35 am

What's the story

SoftBank Group Corp's shares fell by as much as 13% on Friday. The decline comes amid speculation that OpenAI, the artificial intelligence company backed by SoftBank, may delay its initial public offering (IPO) until next year. The news has raised concerns about delayed returns for SoftBank, one of OpenAI's major investors.

Investment details

SoftBank's investment in OpenAI to reach $65 billion

By October, SoftBank's investment in OpenAI is expected to reach nearly $65 billion. The prospect of a successful public listing had previously driven SoftBank's shares to record highs and even boosted its market capitalization above that of Toyota Motor Corp. However, the latest news has triggered SoftBank's biggest intraday decline in over three months during trading in Tokyo.

Market valuation

IPO delay dampens expectations for SoftBank

A successful IPO from OpenAI would give a transparent market valuation for one of SoftBank's largest private holdings. Analysts believe this could narrow the conglomerate discount usually applied to SoftBank's shares, making it easier to assess the value of its wider portfolio of privately held companies. "News of an IPO delay naturally dampens those expectations," said Hiroki Takei, a strategist at Resona Holdings.

Advertisement

Future prospects

OpenAI files confidential paperwork for potential fall IPO

Led by Sam Altman, OpenAI has already filed confidential paperwork with the US Securities and Exchange Commission (SEC). The company is working with Goldman Sachs Group Inc. and Morgan Stanley on a potential listing as early as this fall. However, it faces stiff competition from rivals such as Anthropic, which has also filed for an IPO, and Google's Gemini.

Advertisement

Company hurdles

OpenAI's valuation remains strong despite challenges

Despite its leading role in the generative AI boom with ChatGPT's launch in 2022, OpenAI has faced challenges. Reports suggest it missed internal revenue and user growth targets, and senior executives have left amid efforts to streamline its product portfolio. However, the company recently raised $122 billion from investors at a valuation of $852 billion, highlighting continued interest ahead of its public market debut.

Advertisement