SoftBank Group (SFTBY), led by CEO Masayoshi Son, is making pivotal moves in artificial intelligence (AI). The Japanese tech giant plans to borrow $16 billion to invest in AI, with an option to borrow another $8 billion in early 2026. This follows SoftBank’s ongoing efforts to expand in AI, including talks to invest up to $25 billion in OpenAI, the company behind ChatGPT. This move will make them the largest investor in the company, ahead of Microsoft (MSFT).
SoftBanbk’s Commitments and Losses
SoftBank has already committed $15 billion to Stargate, a joint venture with OpenAI and Oracle (ORCL). Stargate aims to invest up to $500 billion in AI infrastructure in the U.S. to compete with China and other global rivals. This venture was announced at the White House in January 2025 with U.S. President Donald Trump, Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison.
Despite these aggressive investments, SoftBank recently reported a $2.4 billion loss due to declining valuations in its Vision Funds, raising questions about its financial strength. Elon Musk has previously suggested that SoftBank lacks the necessary funds for such large-scale projects regarding its involvement in Stargate. With the company borrowing heavily to finance its AI ambitions, we’ll better understand whether Musk was right and whether SoftBank can sustain these investments or is overextending itself in the race for AI dominance.
Is SFTBY a Sell, Hold, or a Buy?
Turning to Wall Street, SoftBank is considered a Hold based on one analyst rating. The average price target for SFTBY stock is $32.20, implying a 16.37% upside potential.
