SoftBank Group Corp. experienced a substantial decline in its stock, falling as much as 13%, following reports of a potential delay in OpenAI's initial public offering (IPO). This delay, which could push the listing into 2027, has raised concerns for SoftBank, a major investor with an expected $65 billion stake in the ChatGPT maker by October. The market had anticipated a significant financial windfall from OpenAI's public debut, which had previously propelled SoftBank's market capitalization to exceed Toyota Motor Corp.'s last month.
The volatility in tech stocks and safety concerns within the AI industry are cited as reasons for OpenAI's IPO postponement. OpenAI's CEO, Sam Altman, stated in an interview that now is not the right time for a listing, emphasizing safety and alignment issues. The delay impacts SoftBank's liquidity and its ability to recycle capital, as a public listing would provide a transparent market valuation for a large portion of its privately held assets, potentially reducing the heavy conglomerate discount on its shares.
Adding to market anxieties, leaders of the world's largest AI platforms, including Anthropic PBC CEO Dario Amodei, OpenAI's Sam Altman, and xAI's Elon Musk, have called for a slower pace in the development of advanced AI models. Amodei, in a recent blog post, advocated for new safety measures such as third-party evaluators, citing escalating risks and the phenomenon of "recursive self-improvement" in AI. This collective call for a slowdown in AI development further fueled investor caution.
The broader concern within the AI industry, highlighted by a recent resignation of an Anthropic safety researcher and growing bipartisan concern in Washington, suggests a widespread sense of crisis regarding the rapid advancement of superintelligent AI. Legislators are preparing bills to regulate the "catastrophic risks" associated with AI, indicating that the industry's self-imposed slowdown might also be met with external regulatory pressures. This confluence of IPO delays and industry-wide safety warnings has significantly impacted investor confidence in AI-related ventures.
