SoftBank Shares Fall 8% as Chip Selloff Compounds With Report of Lower OpenAI Revenue

3-line summary

• SoftBank Group shares fell about 8% to 5,337 yen in Tuesday Tokyo trading, according to Investing.com, as a broader Asian chip-sector selloff (Nikkei 225 down more than 1,900 points intraday, KOSPI sharply lower on the China memory-chip competition concerns) combined with company-specific pressure.
• SoftBank holds roughly 87% of Arm and has invested a cumulative $64.6 billion in OpenAI for about a 13% stake. Reports that OpenAI's annual revenue is around $50 billion — lower than the previously reported roughly $70 billion — raised questions about whether investment returns can cover SoftBank's high-interest debt load, with the company's credit default swap premiums rising to multi-year highs. The article noted the OpenAI revenue figure is itself an unconfirmed media report.

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