OpenAI IPO expected to drive SoftBank's stock price to a new high
SoftBank Group's stock price rose to a record high on Monday, as the market bets that its holdings in OpenAI and SB Energy could bring substantial returns if they go public in the future. Since May 20, SoftBank's stock price has increased by 40%, and the company's market value has surpassed 40 trillion yen (approximately $252 billion).
The stock price surge over the past two days was driven by reports that OpenAI is preparing to submit an IPO application in the coming days. The power infrastructure company SB Energy also stated that it plans to secretly file for an IPO in the U.S. As OpenAI seems to be getting closer to an IPO, concerns about competitors like Anthropic, Google, and xAI threatening OpenAI's position have eased.
Takashi Nakagawa, a senior analyst at TokaiTokyo Intelligence Laboratory, stated that the market is "extremely excited about the long-awaited OpenAI IPO finally approaching reality." He noted that this move will enhance the transparency of the currently opaque valuations in the artificial intelligence sector. A significant portion of SoftBank's portfolio consists of AI-driven private startups.
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