Investors Thought SoftBank Was Riding the AI Revolution — Now It’s Crashing Hard
The unthinkable just happened.
SoftBank Group, once the biggest believer — and biggest winner — of the global AI boom, has just lost a staggering $50 billion in a single week. Its stock plunged 8% on Friday, extending a brutal selloff that’s shaking confidence in the entire artificial intelligence sector.
After a 10% crash on Wednesday — its worst trading day since 2020 — and a brief rebound Thursday, SoftBank’s shares are now staring at their worst week in five years. If the slide continues, the company could lose over $53 billion in market value by the end of the week.
The “OpenAI Proxy” That Just Collapsed
For months, SoftBank has been treated by investors as the closest thing to owning OpenAI stock — the ultimate AI proxy for anyone who couldn’t buy into the ChatGPT maker directly.
Now, that fantasy is imploding.
“SoftBank Group’s shares are falling as many bought it as the only listed proxy for OpenAI,” said David Gibson, senior research analyst at MST Financial. “But many of those AI partnerships are still potential, not profits.”
In plain English: investors are waking up to the fact that AI hype doesn’t always mean real revenue.
The AI Frenzy Is Cracking — and SoftBank Is Ground Zero
For more than a year, AI stocks have skyrocketed as companies like OpenAI, Nvidia, and Anthropic became the symbols of a new tech era. But this week, reality hit.
Even OpenAI itself is signaling that the road ahead won’t be easy. CEO Sam Altman revealed the company is in talks with the U.S. government about potential federal loan guarantees to help fund new chip manufacturing — a sign that even the industry’s biggest names are feeling the cost pressure of building AI infrastructure.
If OpenAI needs help to pay for chips, what does that mean for smaller players — or for the investors betting everything on them?
SoftBank’s Billion-Dollar Bet Is Backfiring
SoftBank has spent years pouring billions into AI startups through its Vision Fund, betting big on the technology that its founder Masayoshi Son calls “the greatest force in human history.”
That bold vision once made SoftBank a Wall Street darling. But when the hype fades, the losses hit hard — and fast.
In just five trading days, SoftBank’s stock has erased more than $53 billion in value. That’s more than the annual GDP of countries like Croatia or Luxembourg — gone, in less than a week.
Analysts Are Sounding the Alarm: “The Euphoria Is Over”
According to MST Financial’s Gibson, the latest collapse isn’t just about SoftBank — it’s a warning sign for the entire AI industry.
“The short-term euphoria is giving way to more grounded expectations,” he said. “The AI story is still powerful, but people are realizing it won’t deliver overnight.”
Translation? The AI bubble might be deflating faster than anyone expected.
Masayoshi Son’s Moment of Truth
For decades, Masayoshi Son has built his empire on bold, high-risk bets — from early investments in Alibaba to billion-dollar pushes into futuristic tech. But as AI markets turn volatile, even Son’s vision is being tested.
SoftBank’s Vision Fund has already taken heavy hits from failed tech bets in the past, including WeWork. Now, the AI downturn threatens to repeat history — and investors are getting nervous.
Son has promised that SoftBank will be “reborn as an AI powerhouse.” But with $50 billion evaporated in days, that rebirth is looking more like a reality check.
The Bottom Line: The AI Bubble Is Starting to Leak
SoftBank’s crash may be the loudest signal yet that the AI gold rush has gone too far. After a year of endless hype, trillion-dollar valuations, and promises of an AI-driven future, markets are finally asking: Where are the profits?
For now, the answer is unclear. But one thing is certain — SoftBank’s $50 billion loss is no blip. It’s a warning that even the most powerful believers in AI aren’t immune to gravity.
The bubble hasn’t burst yet. But it just made a very loud sound.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.