- Softbank Group shares fell on Wednesday after recent reports showed OpenAI– a major investment for the company– saw sharp increases in spending through 2025 and the first quarter of 2026.
- Softbank shares fell as much as 5% to 6,730.0, before trimming some losses to trade down 3.1%.
- OpenAI's cash burn tripled year-on-year to $3.7 billion in the first three months of 2026.
- OpenAI's revenue jumped threefold to $5.7 billion, but the company continued to struggle with profitability amid outsized costs associated with running its advanced artificial intelligence models.
- OpenAI's loss jumped nearly eightfold to $39 billion in 2025, on revenue of about $13 billion.
- Softbank's efforts to raise a $6 billion margin loan on its OpenAI stake had stalled, amid growing uncertainty over OpenAI’s valuation.
- Softbank has bet heavily on OpenAI, with commitments of over $60 billion.
Softbank Group's shares fell 3.1% on Wednesday, reflecting investor concerns over its significant investment in OpenAI, which has seen its cash burn triple to $3.7 billion in early 2026. Reports indicate that OpenAI's losses surged to $39 billion in 2025, despite revenue increasing to $13 billion.
The Financial Times highlighted that OpenAI's losses, excluding one-off items, reached approximately $8 billion in 2025. This financial strain comes as Softbank attempts to secure a $6 billion margin loan against its OpenAI stake, which has faced valuation uncertainties.
Softbank's commitment to OpenAI exceeds $60 billion, and while the initial investment has appreciated, doubts about the sustainability of this stake are growing. The tech conglomerate's challenges are compounded by the high operational costs associated with OpenAI's advanced AI models, which continue to hinder profitability despite a threefold revenue increase to $5.7 billion in the same period.
As Softbank navigates these financial hurdles, the future of its investment in OpenAI remains uncertain, raising questions about the viability of such large-scale commitments in the rapidly evolving tech landscape.
“Softbank Group shares have declined following reports of significant spending by OpenAI, which saw its cash burn triple to $3.7 billion in early 2026. The tech conglomerate faces increasing doubts over its investment amid OpenAI's financial losses and valuation uncertainties.”
