SoftBank's stock price has plummeted on the Japanese market following news that OpenAI is considering delaying its initial public offering (IPO).
As of 1:49 p.m. on June 26, SoftBank shares had fallen by approximately 966 yen (13.57%) to 6,152 yen. This decline comes after reports indicated that OpenAI plans to postpone its IPO, originally scheduled for this year, to next year. Consequently, expectations for SoftBank's equity valuation gains have diminished. SoftBank has committed to investing a total of $65 billion (about 10 trillion won) in OpenAI by October, which would give it approximately a 13% stake in the company.
Hiroki Takey, a strategist at Resona Holdings, stated to Bloomberg News, "The news of the IPO delay has naturally weakened those valuation expectations."
On June 25, The New York Times reported, citing three sources, that OpenAI was initially considering an IPO in the third or fourth quarter of this year but is now discussing a delay. OpenAI's advisory board presented CEO Sam Altman with two options: wait until 2027 for a valuation of $1 trillion or proceed with an earlier IPO at a lower valuation. Altman reportedly expressed that he would not consider changing the $1 trillion valuation goal.
The discussions are influenced by SpaceX's recent $85 billion fundraising, which marked the largest IPO in history but has since faced a downturn. Additionally, concerns surrounding AI companies have contributed to a decline in tech stock prices, according to the Times.
However, the Times also noted that as competition intensifies among AI companies like Anthropic and Google, the need for funding to invest in AI infrastructure is growing. A delay in the IPO could increase financial pressure on OpenAI.
Meanwhile, reports from The Information and CNN indicate that OpenAI is delaying the release of its next AI model, GPT-5.6, at the request of the White House regarding security concerns. Access to the model will initially be limited to a select few institutions authorized by the U.S. government. As a result, OpenAI faces compounded challenges with both the IPO delay and the postponed model release.
* This article has been translated by AI.
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