SoftBank's market cap halves from peak over AI fears

SoftBank Group market value halved from its peak in June, as higher borrowing costs fuel investor concerns over the sustainability of its massive investments in artificial intelligence.

Shares of the Tokyo-based company fell 6.9% on Thursday, taking their drop from an all-time high struck on June 2 to 50%, with earnings from US megacaps failing to ease the angst. After briefly overtaking Toyota Motor as Japan's biggest company four months ago, its market capitalization is now about ¥24.7 trillion ($157 billion), smaller than that of Hitachi Ltd. and Recruit Holdings Co.

Global concerns over AI spending had accelerated after America-based cloud-computing provider CoreWeave Inc.'s bonds fell to levels associated with distress, exposing financing risks across the industry.