SoftBank Group
7 storiesSoftBank Group is a Japanese investment holding company founded by Masayoshi Son, with businesses spanning chip design and investing, including chip unit Arm. Recent coverage has centered on its large AI bets: a record $11.1 billion junk bond deal, a margin loan backed by Arm shares raised to $25 billion, and a possible acquisition of US security firm Allied Universal. Its credit default swaps neared a three-year high and its market value may halve from its June peak.
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SoftBank Group's market value is poised to halve from its June peak as higher borrowing costs fuel investor concerns over the sustainability of its massive AI investments.
SoftBank Group is considering acquiring Allied Universal, the largest US security services company, as founder Masayoshi Son looks to deploy AI-powered robots across industries. If completed, it would be a major bet on AI robotics.
SoftBank Group's equity investors are shrugging off worries about the Japanese company's higher borrowing costs and focusing instead on potential returns from its AI bets.
SoftBank Group founder Masayoshi Son has said he's "all in" on AI, and the conglomerate's record $11.1 billion junk bond deal last week shows the lengths executives are going to finance that vision.
Nvidia is buying an additional $1.5 billion in shares of SB Energy, a SoftBank-backed data center provider, ahead of its US IPO, underscoring Nvidia's continued push into data center and energy infrastructure that supports AI computing.
SoftBank increased its margin loan backed by shares of chip unit Arm by $5 billion to $25 billion to help fund its expanding investments in artificial intelligence.
SoftBank Group's credit default swaps have risen near a three-year high as traders weigh risks linked to its large bet on OpenAI and potential funding plans, signaling market concern about SoftBank's financial exposure.
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