SoftBank stock investors see past credit risks to AI returns
Masayoshi Son's diverse exposure across the AI landscape —ranging from robotics, data centers and energy — reassures some equity investors.
SoftBank Group's equity investors are increasingly optimistic about the potential returns from its artificial intelligence (AI) investments, contributing to a stock rebound despite higher borrowing costs. The Japanese company's shares saw their first monthly gain in four months in September, following the launch of OpenAI's GPT-6 Astra model, which reignited enthusiasm around Masayoshi Son's $65 billion investment in the ChatGPT creator.
The stock experienced a 24% increase over four weeks, driven by OpenAI's announcement to raise an additional $30 billion at a valuation of $1.4 trillion. Additionally, a recovery in chip unit Arm Holdings shares further bolstered confidence in SoftBank's ability to finance its growing debt levels.
Despite these positive developments, concerns about AI safety, soaring costs, and increased competition have caused SoftBank's credit default swaps (CDS) to climb to their highest level since 2023. This starkly contrasts with the decline in shares of Oracle, which has invoked force majeure to protect itself from escalating data center expenses.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
