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SoftBank Group's Stargate Investment to Weigh On Creditworthiness, S&P Says

MT Newswires Live2025-01-23

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.

Price (JPY): $10755.00, Change: $+530, Percent Change: +5.13%

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