What happened
SoftBank Group shares plunged sharply on Tuesday, reaching a 2 1/2-month low. The drop followed concerns that Alphabetâs latest Gemini AI model could intensify competition for OpenAI, a key SoftBank investment. The stock fell as much as 11% on Tuesday after a 10.9% decline in the previous session.
Why it matters
- The sharp decline highlights investor anxiety about SoftBankâs exposure to OpenAI amid rising competition in the AI sector.
- SoftBank Group has lost more than 40% of its market value since briefly reaching a ¥40-trillion valuation less than a month ago.
Key facts
- 1. SoftBank Group shares dropped as much as 11% on Tuesday.
- 2. The stock had fallen 10.9% in the previous session before Japanâs long weekend.
- 3. The recent slump pushed SoftBank Groupâs market value below Â¥40-trillion, down more than 40% from its recent peak.
- 4. The decline occurred despite gains in other AI-related Japanese stocks during the same period.
Key Voices
- Tsutomu Yamada, market analyst at Mitsubishi UFJ eSmart Securities Co, said SoftBank shares were hit by concerns that OpenAIâs competition environment would become tougher after Googleâs Gemini 3 received strong reviews.
