OpenAI IPO Delay Weighs on SoftBank Shares as AI Valuation Concerns Grow

SoftBank Group (TYO:9984) shares tumbled sharply on Friday after a report suggested that OpenAI is considering postponing its highly anticipated initial public offering (IPO), delaying what many investors had expected to be a major liquidity event for the artificial intelligence company.

According to a report by The New York Times, OpenAI is leaning toward delaying its IPO until 2027 instead of pursuing a listing next year. The decision comes as advisers reportedly encouraged Chief Executive Officer Sam Altman to take a more cautious approach following the mixed market reception of Elon Musk’s SpaceX (NASDAQ:SPCX) public debut and amid ongoing financial pressures facing the ChatGPT developer.

The report triggered a negative reaction in Tokyo, where SoftBank shares dropped 11.3% to 6,317 yen by 01:06 GMT. SoftBank is among OpenAI’s largest investors, having backed the company through multiple funding rounds and artificial intelligence infrastructure initiatives. Any delay in OpenAI’s public listing could postpone potential gains for SoftBank and other major shareholders.

OpenAI had previously explored launching its IPO as early as the third or fourth quarter of 2026 while targeting a valuation of up to $1 trillion. That figure would represent a significant jump from the company’s most recent private valuation of approximately $730 billion.

However, advisers reportedly believe current market conditions may not support such an ambitious valuation. Ongoing volatility in global equity markets, combined with increasing investor scrutiny over the long-term profitability of AI companies, has raised concerns that public investors may be unwilling to support premium valuations in the near term.

Rather than lowering its valuation target to accelerate the listing process, OpenAI executives are reportedly considering waiting until 2027 in hopes that market conditions improve and investor appetite for artificial intelligence companies strengthens.

The reported delay underscores the broader challenges facing high-growth AI firms seeking public listings. While enthusiasm surrounding generative AI remains strong, investors are becoming more selective, demanding clearer paths to profitability and sustainable revenue growth before assigning trillion-dollar valuations.

For SoftBank, the news highlights the risks associated with its significant exposure to artificial intelligence investments. The company has aggressively expanded its AI portfolio in recent years, making OpenAI one of its most closely watched strategic holdings. As a result, any uncertainty surrounding OpenAI’s IPO timeline is likely to remain a key factor influencing investor sentiment toward SoftBank shares.