SoftBank Shares Fall Another 10.8%, Down 59% Since June as AI Bets Weigh
SOFTBANK PLUNGES 59% AS DEBT-FUELED AI BETS UNRAVEL SoftBank shares fell another 10.8% Friday, extending losses to 59% since early June. The company added $40.4 billion in debt over 12 months to fund AI investments, including $64 billion in OpenAI. Meanwhile, Arm shares have plunged 51% since June 30, weakening SoftBank's asset backing as credit-default swaps rise and bond prices fall. SoftBank's reported leverage was 13%, below its self-imposed 25% limit, suggesting a substantial remaining cushion.
Context
SoftBank is a major OpenAI backer, so its slide is a gauge of market stress around AI spending.
Walter Bloomberg reported the drop and said SoftBank added $40.4 billion of debt over 12 months to fund AI investments. Arm shares have fallen 51% since June 30, per the post. Its reported leverage of 13% remains below a self set 25% limit.