SoftBank Group's Tokyo-listed shares slid sharply on Friday after a report suggested OpenAI, the developer of ChatGPT, is inclined to postpone its planned initial public offering until 2027 rather than pursue a listing this year. The development, if confirmed, would delay a major liquidity event for investors in the artificial intelligence company.
By 01:06 GMT, SoftBank shares had declined 11.3% to 6,317.0 yen. Market participants attributed the move to the report's indication that OpenAI's advisers had urged a cautious approach to any public offering amid uncertain investor appetite for high AI valuations.
The report said that OpenAI had at one point explored a public listing as early as the third or fourth quarter of 2026 and had considered seeking a valuation up to $1 trillion, which would be notably higher than its last private valuation of $730 billion. However, advisers reportedly cautioned that volatile equity markets, alongside questions about whether AI companies can sustain such lofty valuations, could weigh on demand for a near-term IPO.
Those same advisers are said to have recommended slowing the timetable, with company executives now portrayed as considering a 2027 listing at the targeted valuation instead of reducing expectations to expedite a public debut. The report also highlighted ongoing financial challenges at the ChatGPT maker as a factor underlying the counsel for caution.
SoftBank is identified in the report as one of OpenAI's largest backers, participating in the company's funding rounds and in AI infrastructure initiatives. As a result, any sizable delay to an OpenAI IPO would potentially defer an important exit opportunity for SoftBank and other investors.
The report additionally cited recent market reactions to other private-market transactions as part of the advisers' rationale for urging restraint, noting that those outcomes had encouraged a more conservative stance toward timing a public offering.
Context and market impact
The reported shift in OpenAI's IPO timeline has translated into immediate pressure on investors with exposure to the private AI firm, and pushed a major Japanese equity into negative territory during trading on Friday. The combination of valuation expectations, market volatility, and company financials framed the advisers' recommendations, according to the report.