SoftBank’s SB Energy Slows $50 Billion IPO as 10% Debt Yield Signals AI Doubts
Updated
Updated · Financial Times · Sep 21
SoftBank’s SB Energy Slows $50 Billion IPO as 10% Debt Yield Signals AI Doubts
3 articles · Updated · Financial Times · Sep 21
Summary
SB Energy has slowed work on its planned IPO at about a $50 billion valuation, waiting for sentiment on AI-linked data centres to improve before pushing ahead.
A proposed $4.9 billion debt sale also met weak demand, with investors indicating they would want roughly a 10% yield — pricing that implies junk-grade risk.
Investor concern centers on softer expected computing demand after OpenAI and Anthropic signaled slower model development, while SB Energy also depends heavily on OpenAI as a customer.
The financing challenge is acute because SB Energy has yet to bring a data centre online, yet says its contracted projects will require $174 billion of investment, mostly funded with debt.
The delay adds to signs of a broader cooling in AI infrastructure markets after Holtec postponed its own listing, pressuring SoftBank as it has committed more than $60 billion to OpenAI.