SoftBank shares tumble as OpenAI IPO delay fuels Asian tech stock slump

SoftBank Group saw its shares plunge more than 10% after reports that OpenAI, a major AI investment of the conglomerate, may postpone its initial public offering until 2027. The news raised concerns about delayed returns for SoftBank and intensified worries about the rising costs of AI infrastructure. The market reaction spread across Asian equities, with South Korea’s Kospi falling over 4% and Japan’s Nikkei shedding more than 3% as investors reassessed valuations for hyperscale tech firms. The decline followed a broader pull‑back in Asian tech stocks after the Nasdaq slipped for a fourth straight session, driven by worries that trillions of dollars invested in AI may not yield the expected returns.

Analysts linked the sell‑off to softening confidence in AI‑related capital expenditures. "News of an IPO delay naturally dampens those expectations," said Hiroki Takei, a strategist at Resona Holdings. The combined effect of higher AI costs, a potential slowdown in AI‑driven spending, and the OpenAI IPO uncertainty contributed to the sharp sell‑off across the region.