SoftBank credit risk hits four-year high as AI concerns shake markets

boursorama.com (French) —

SoftBank's credit risk has surged to a four-year high as AI profitability concerns roil global markets, with its five-year credit default swap spread jumping 22 basis points to 466 basis points on Friday. The spread, at its highest since October 2022, reflects investor anxiety over SoftBank's $64.6 billion investment in OpenAI and its 90% stake in chip designer Arm, alongside increased debt financing for the OpenAI stake amid delayed IPO prospects. Democratic midterm election victories this week have fueled fears of slower AI infrastructure development, potentially jeopardizing a third of planned US data center capacity in states where governors may slow progress.


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