SoftBank shares slide 5% as OpenAI revenue report raises doubts

SoftBank Group's stock fell 5.2% to ¥5,728 on Friday after a Financial Times report questioned OpenAI's profitability, revealing its annualized revenue was about $50 billion at the end of September, roughly $20 billion less than the previously reported $70 billion figure. The discrepancy stems from differences in how OpenAI and rival Anthropic account for revenue generated through cloud partners, raising doubts about AI monetization speed and the credibility of earlier growth projections. SoftBank is particularly affected as it holds a 13% stake in OpenAI through a $64.6 billion commitment, partly financed by $11.1 billion in high-yield bonds with annual financing costs of about 9-10%. Investors now question whether returns from the stake justify the debt burden, a concern already reflected in SoftBank's credit default swaps reaching multi-year highs. The broader market offered little support, with Japan's Nikkei 225 falling 0.55% on Friday following overnight declines on Wall Street.