SoftBank Shares Decline Amid Major AI Investment Announcement

Despite leading a substantial funding round for an artificial intelligence firm, SoftBank Group Corp. saw its stock price fall sharply in Tokyo trading. The market's reaction stands in stark contrast to the company's ambitious bet on the convergence of AI and robotics.

On January 14, SoftBank acted as the lead investor in a Series C funding round for Skild AI, a company specializing in autonomous learning software. The transaction valued Skild AI at $14 billion. The funding round, which raised a total of $1.4 billion, also saw participation from technology giants including Nvidia and Salesforce.

This move is a direct execution of CEO Masayoshi Son's strategy to position SoftBank as a dominant force in "Physical AI." The investment complements the group's existing stake in chip designer Arm Holdings and follows recent capital allocations toward OpenAI. In a related development, SoftBank and OpenAI recently committed $1 billion to SB Energy to bolster infrastructure for AI data centers.

Should investors sell immediately? Or is it worth buying SoftBank?

Market Reaction Overwhelms Strategic Narrative

The strategic announcement failed to generate positive momentum for SoftBank's shares. When trading concluded in Tokyo on Wednesday, the stock had dropped 4.18 percent to 4,261 yen. Investors appear to be weighing the immense long-term costs of these technology bets against the company's immediate financial metrics.

The historical volatility of the Vision Fund contributes to market nervousness surrounding such capital-intensive steps. Reports of stake sales in other portfolio companies, such as India's Ola Electric, further indicate an active portfolio reshuffling. This activity is likely aimed at generating liquidity to fund the renewed focus on artificial intelligence investments.

Financial Sustainability Questions Loom

The upcoming financial report will provide crucial insight into the viability of this strategy. SoftBank is scheduled to release its third-quarter results on February 12, 2026. This disclosure will reveal the impact of these recent major investments on the company's balance sheet and whether the Vision Fund can meet the high expectations placed upon it. For now, the market's verdict, reflected in the share price decline, suggests a wait-and-see approach from investors.