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SoftBank’s bet on OpenAI is starting to weigh

Financial Times Asia
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2 min read
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SoftBank’s $10B+ investment in OpenAI, made in 2023, is under scrutiny as the AI lab’s soaring valuation and cash burn strain the conglomerate’s balance sheet amid broader tech downturns. OpenAI’s aggressive R&D spending—fueled by its race to achieve AGI—has delayed profitability, forcing SoftBank to reallocate funds from its Vision Fund, which already faces losses from other high-risk bets. Regulatory pressures and ethical debates over AI governance add risk, with OpenAI’s closed-source models clashing with global calls for transparency, potentially devaluing SoftBank’s stake long-term. Competitors like Google and Anthropic are outpacing OpenAI in enterprise adoption, reducing SoftBank’s expected ROI as the AI market shifts toward practical, cost-efficient applications over moonshot research. Analysts warn SoftBank may need to divest part of its OpenAI holdings to stabilize its portfolio, signaling a broader retreat from speculative AI investments after years of aggressive tech betting.
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Source: Financial Times Asia

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