SoftBank shares tumble after AI chiefs sound alarm on safety
SoftBank fell more than 13% Monday in Tokyo, their biggest intraday decline since late June. That’s as the company’s credit default swaps widened to the highest level since March 30, nearing three-year highs
SoftBank Group's shares plummeted, marking their biggest decline in nearly three months, following warnings from the chief executives of Anthropic PBC and OpenAI. The CEOs urged developers to slow down AI development due to safety concerns, exacerbating market uncertainty surrounding the Japanese tech investor. SoftBank is heavily invested in AI projects, having committed close to $65 billion to the sector by October, including a significant stake in OpenAI.
The company's credit default swaps surged to their highest level since March 30, nearing three-year highs, as investors worry about Son's unwavering faith in AI's potential. Despite this, SoftBank secured an $11.87 billion loan to bolster its investment in OpenAI, adding to its financial commitments. The slowdown in frontier model development and concerns over valuation have further unsettled the market, which remains alert to the potential impact on OpenAI's value.
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Also reported by 2 other outlets
- SoftBank shares slide 13% after AI chiefs sound alarm on safety economictimes.indiatimes.com
- SoftBank Shares Slide 13% After AI Chiefs Sound Alarm on Safety bloomberg.com
