SoftBank Group shares fell as much as 7.3% to 5,600 yen in Tokyo trading on Friday before paring losses. As of 8:59 AM Beijing time, the stock was down about 4% at 5,810 yen.
The decline was primarily driven by OpenAI's revenue figures coming in below previously reported levels. Reports indicated that OpenAI's annualized revenue as of the end of September was approximately $50 billion, roughly $20 billion lower than the previously reported $70 billion, sparking investor concerns about the growth pace of the artificial intelligence industry and the returns on massive infrastructure investments. As a major investor in OpenAI, SoftBank was hit particularly hard.
OpenAI's $20 Billion Annualized Revenue Discrepancy Raises Concerns Over AI Investment Returns
Newly disclosed information shows that OpenAI's annualized revenue as of the end of September this year was approximately $50 billion, about 29% lower than the previously reported $70 billion. This discrepancy stems from differences in how OpenAI and its competitor Anthropic account for revenue generated through cloud service partners, and it has refocused market attention on the comparability of the two companies' revenue figures as well as the actual pace of commercialization in the AI industry. As tech companies continue to pour enormous sums into building AI data centers and computing infrastructure, investors are increasingly focused on whether revenue growth can support these capital expenditures. The change in OpenAI's revenue figures has further fueled market concerns about the outlook for AI investment returns.
SoftBank's Cumulative Investment in OpenAI Reaches $64.6 Billion, Holding Approximately 13% Stake
SoftBank is one of OpenAI's key investors, making its stock particularly sensitive to changes in OpenAI's business and valuation. On October 1, SoftBank completed another $10 billion investment in OpenAI, bringing its cumulative investment to $64.6 billion and raising its stake to approximately 13%. SoftBank founder Masayoshi Son has in recent years continued to expand the group's presence in the AI sector, seeking to position SoftBank as a major investment and capital operations platform in the global AI industry. As the scale of investment in OpenAI continues to grow, OpenAI's revenue growth, future profitability, and valuation changes are exerting an increasingly important influence on SoftBank's investment prospects. Following the market concerns triggered by the revenue data, SoftBank shares fell to as low as 5,600 yen during Friday's session, with a maximum decline of 7.3%, before narrowing to about 4%.
US Tech Sector Also Sold Off, Philadelphia Semiconductor Index Drops 3.4%
The OpenAI revenue news had already dealt a significant blow to US tech stocks. At Thursday's close on Wall Street, the Nasdaq Composite Index fell about 1.3%, while the Philadelphia Semiconductor Index dropped approximately 3.4%, reflecting a decline in investor risk appetite for AI-related stocks. Market concerns are mainly centered on the return on investment in the AI industry. Over the past few years, tech companies have invested heavily in building data centers, purchasing high-performance chips, and expanding computing power, and the revenue growth rates of major AI companies like OpenAI are seen as a key gauge of whether these investments can generate sufficient returns. For SoftBank, with its cumulative investment in OpenAI approaching $65 billion, the gap between OpenAI's revenue performance and market expectations has become a significant factor affecting SoftBank's stock price. Investors will continue to watch whether OpenAI can sustain rapid revenue growth and whether SoftBank's massive AI investments can ultimately translate into corresponding financial returns.