SoftBank's $65B OpenAI bet risks credit rating: Report
S&P Global just shifted SoftBank's credit outlook to negative (though kept its BB+ rating) after the Japanese tech giant poured another $30 billion into OpenAI.
That brings SoftBank's total investment in the AI company to nearly $65 billion, giving it a 13% stake and likely pushing the share of unlisted assets in SoftBank's portfolio above 50%.
Risks of being heavily invested in 1 company
With so much money tied up in one unlisted company, SoftBank is taking bigger risks—less liquidity and more pressure on its debt levels.
Even though they hold a substantial stake in OpenAI, delays around selling assets or taking companies public could make things financially tricky.
Potential solutions and challenges for SoftBank
S&P is worried about OpenAI's weaker credit quality compared to other SoftBank holdings, plus all the uncertainty swirling around AI right now.
To avoid a downgrade, SoftBank might need to sell off some assets or push for an earlier OpenAI IPO—but global tensions and possible AI market bubbles could get in the way.