One signal

SoftBank shares rose 2.2% in Tokyo on Wednesday after an 8.5% plunge the day before, Invezz reports. The stock remains 38% below its June record, even as the group’s backing of OpenAI has reached $64.6 billion.

That AI exposure is both the attraction and the risk. SoftBank raised $11 billion in a high-yield bond sale to fund its strategy, with some debt yielding as much as 9.75%, the report says. A rebound suggests some investors see renewed upside after the fall, not that the financing challenge has gone away. In AI infrastructure, enthusiasm is one thing; earning enough to service expensive debt is another.

Discuss: Does SoftBank’s AI exposure make the shares worth the financing risk, or should the high borrowing costs outweigh the potential upside?

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