S&P Revises SoftBank's Rating Outlook to Negative, Says $30 Billion Investment in OpenAI May Damage Credit Quality

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S&P has revised SoftBank Group’s outlook from stable to negative, stating that the company’s plan to invest an additional $30 billion in OpenAI could impair its liquidity and the credit quality of its assets. Prior to this outlook change, SoftBank decided last month to deepen its investment in OpenAI, having already invested over $30 billion in the company and invested in other AI firms. S&P affirmed SoftBank’s long-term issuer credit rating of “BB+” and noted that SoftBank might limit negative financial impacts by selling assets. The rating agency stated in a Tuesday release, “SoftBank’s investments in AI, including its stake in OpenAI, mainly involve startups and private companies we believe face significant AI innovation risks and intense competition. We consider OpenAI to be one of its riskiest investments in terms of credit quality.”

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