SoftBank’s AI Bet Backfires as Market Sentiment Shifts

SoftBank Group Corp. has lost over $100 billion in market value since divesting its Nvidia stake, with investors treating the Japanese conglomerate as a proxy for OpenAI exposure. The downturn accelerated after Alphabet Inc.'s Gemini 3.0 release rattled confidence in AI valuations.

Masayoshi Son's aggressive pivot to artificial intelligence now weighs heavily on SoftBank. Second-quarter profits of ¥2.5 trillion, fueled by a $14.6 billion paper gain from OpenAI, have evaporated. The Vision Fund's $32 billion commitment to Sam Altman's startup includes a looming $22.5 billion December payment.

Recent acquisitions reveal Son's doubling down. The $6.5 billion purchase of Ampere Computing complements SoftBank's 90% stake in Arm Holdings, targeting energy-efficient AI chips. But markets appear skeptical - while Ampere's Arm-based architecture aligns with SoftBank's infrastructure focus, investors continue punishing AI-related valuations.