SoftBank founder Masayoshi Son's massive AI investment has soured, with shares falling 60% since June. The Democratic victory in US midterms exposed political risks for AI infrastructure in Texas. Newer AI companies like SB Energy face greater financing difficulties than established tech groups.
The uncertainty threatens SB Energy's $50bn listing and Roze's AI development plans. Geopolitical tensions with China blocked SoftBank's ABB robotics acquisition. SoftBank committed $65bn to Open AI, which faces listing delays as rival Anthropic approaches its own IPO.
Falling asset values, particularly Arm down 60%, have pushed loan-to-value ratios to 18-22% from 13% in June. Analysts estimate this could allow $10-26bn in additional funding capacity, though only 10% of available borrowing has been drawn. SoftBank faces double risk from falling asset values and tighter credit markets.
Source: Financial Times Companies · Summarized by HeadlinesBriefing