SoftBank shares fall 12% after report of OpenAI IPO delay

Shares of SoftBank Group Corp. plunged more than 12% in Tokyo trading on Friday, marking the company's steepest single-day decline in over three months. The sharp drop followed a report that OpenAI, the artificial intelligence company in which SoftBank holds a massive stake, may postpone its initial public offering until 2027.

The report, published by the New York Times on Thursday, cited concerns among OpenAI's advisors that current volatility in technology stocks could weaken investor appetite for a debut at a potential $1 trillion valuation. This single development erased a significant portion of the gains SoftBank had accumulated in recent months, driven largely by market enthusiasm for its OpenAI investment. The sell-off contributed to a broader decline in Asian markets, with Japan's benchmark Nikkei 225 index closing 4.15% lower.

By October of this year, SoftBank's total investment commitment to OpenAI is expected to reach approximately $65 billion. The fair market value of that stake was reported at $79.6 billion at the end of last year, against a cumulative cost of $34.6 billion. The prospect of a lucrative public offering for OpenAI had propelled SoftBank's valuation to...