SoftBank Shares Reach Record High Amid Optimism Over Potential OpenAI IPO

SoftBank Shares Reach Record High Amid Hopes for OpenAI and SB Energy IPOs

SoftBank Group Corp. shares achieved a record high in Tokyo trading on Monday, driven by optimism over potential returns from the Japanese investor's stakes in OpenAI and SB Energy Corp. The surge in SoftBank's shares comes as tech stocks gain on growing demand for artificial intelligence (AI). The company's market value surpassed ¥40 trillion ($252 billion), representing a 40% increase from May 20.

SoftBank's shares rose 4.6% in Tokyo trading, with the gains attributed to reports that OpenAI is preparing to file for an initial public offering (IPO) in the coming days. Power infrastructure unit SB Energy also announced plans to confidentially file for an IPO in the US. This sharp rebound indicates a shift in investor sentiment, as concerns over rising competition to OpenAI from companies like Anthropic PBC, Google, and xAI Corp. begin to dissipate.

OpenAI's long-anticipated IPO has sparked excitement among investors, with signs that the company may be moving closer to a listing. This development is expected to improve transparency over opaque valuations in the AI sector. SoftBank's investment portfolio is heavily weighted towards AI-led, closely held startups. The company's significant stake in OpenAI, which has committed a further $20 billion for a total investment of close to $65 billion, would give it a roughly 13% stake in the ChatGPT developer by October.

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SoftBank-backed SB Energy, which focuses on power generation and grid management, has been central to founder Masayoshi Son's ambitions to roll out data centers across the US. The unit raised more than ¥180 billion ($1.8 billion) over the past year from SoftBank, OpenAI, and Ares Management. The rally in SoftBank's shares was further supported by gains in Arm Holdings Plc's shares following Nvidia Corp.'s earnings results and rising expectations of AI proliferation throughout society. SoftBank is one of OpenAI's largest shareholders, and its stock is heavily influenced by newsflow about its portfolio companies, which include ByteDance and Coupang.