SoftBank Group faced a downgrade to “Underperform” by Jefferies, which expressed concerns over the company’s substantial financial commitments to OpenAI, raising valuation integrity issues. Jefferies highlighted risks linked to SoftBank’s concentrated investments and accelerated funding of the AI firm, noting that it accounted for about 85% of OpenAI’s recent capital raises, inflating valuations from $150 billion to $840 billion. Additionally, SoftBank pays OpenAI approximately $3 billion annually, complicating its financial landscape. Analysts indicated that uncertain external funding commitments, including $100 billion from Middle Eastern investors, could further strain prospects. As competition escalates, OpenAI’s ChatGPT faces challenges from rivals like Google’s Gemini and Anthropic’s Claude. Furthermore, OpenAI reported a $12 billion loss in Q3 2025, signaling deteriorating economics and rising credit risk. Jefferies suggested that changes in SoftBank’s outlook could depend on government support or successful public listings for OpenAI.
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