Softbank Group's (TYO:9984) lead investment in OpenAI's Stargate project, a $500 billion effort to build AI infrastructure in the US, could impair the company's financial improvement, S&P Global Ratings said in a Thursday release.
The investment's uncertain scale and returns as well as the Japan-based investment holding company's aggressive investing style weigh on the company's credit profile, S&P said.
However, the investment will be made jointly with partners over several years, which somewhat lowers the project's risk, the rating agency said.
A successful implementation will also provide the company with stable, recurring revenues, S&P said.
The company's history of managing its investments will be key in assessing the Stargate investment's impact, according to S&P.
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