SoftBank Shares Drop as OpenAI Losses and Rising Costs Spark Investor Concerns

SoftBank Group Corp. (TYO: 9984) shares fell sharply on Wednesday after new reports highlighted growing concerns about OpenAI’s financial performance and increasing cash burn, raising questions about the value of SoftBank’s massive investment in the artificial intelligence company.

SoftBank stock dropped as much as 5% during trading, hitting ¥6,730 before recovering slightly to trade down about 3.1%. The decline contrasted with a 0.7% gain in Japan’s benchmark Nikkei 225 index, making SoftBank one of the market’s weaker performers.

Investor sentiment was impacted by reports indicating that OpenAI’s operating costs continued to rise significantly despite strong revenue growth. According to The Information, OpenAI’s cash burn reached approximately $3.7 billion in the first quarter of 2026, nearly tripling from the same period a year earlier. While revenue reportedly surged to $5.7 billion during the quarter, profitability remains elusive as the company faces substantial expenses tied to developing and operating advanced AI models.

Additional concerns emerged after the Financial Times reported that OpenAI’s total loss expanded to nearly $39 billion in 2025. Excluding one-time accounting items, the AI startup still posted an estimated loss of around $8 billion on revenue of roughly $13 billion, underscoring the challenges of scaling artificial intelligence infrastructure profitably.

The reports add pressure to SoftBank, which has committed more than $60 billion to OpenAI. Although the Japanese technology conglomerate has benefited from the appreciation of its early investment, investors are increasingly questioning whether OpenAI’s valuation can be sustained amid mounting losses and aggressive spending.

Market concerns were also amplified by reports that SoftBank’s attempt to secure a $6 billion margin loan backed by its OpenAI stake had encountered difficulties. Uncertainty surrounding OpenAI’s long-term valuation has reportedly made lenders more cautious. The startup previously raised capital at an estimated valuation of $852 billion earlier this year.

Adding to investor skepticism, reports recently suggested that OpenAI may significantly reduce pricing for some of its AI products and services. Lower pricing could help expand adoption but may also place additional pressure on profit margins and future earnings potential.

Competition within the AI industry is another factor weighing on sentiment. Recent advances by rival AI company Anthropic in enterprise AI solutions and frontier model development have intensified competition, prompting investors to reassess OpenAI’s market leadership and growth prospects.

Despite these concerns, OpenAI recently confidentially filed for an initial public offering (IPO). A future public listing could provide SoftBank with an opportunity to monetize part of its investment and potentially ease concerns surrounding the company’s sizable exposure to the AI startup.

As artificial intelligence remains one of the most closely watched sectors in global technology markets, investors will continue monitoring OpenAI’s financial performance, competitive position, and path toward profitability, all of which could have significant implications for SoftBank shares and the broader AI investment landscape.