Softbank CEO Masayoshi Son announced the Stargate project with a $500 billion investment in data centers alongside President Trump, OpenAI CEO Sam Altman, and Oracle founder Larry Ellison. Son sold Softbank’s Nvidia shares for $5.83 billion to increase its investment in OpenAI to $30 billion.

Softbank’s stock has dropped 40% since October due to concerns over its AI infrastructure and software plans. Bloomberg attributes the decline to Softbank’s investment in OpenAI. The company faces risks related to going into debt to fulfill investment commitments and uncertainty about the need for massive data center construction to support AI.

OpenAI is not expected to be profitable until 2028 and will require hundreds of billions in additional investments to achieve its growth plans. The company’s market value needs to rise significantly, and a slowdown in AI adoption could hinder this goal. OpenAI faces competition from Alphabet’s Gemini 3.0, which experts have found to outperform OpenAI’s GPT-5.1 in some tasks.

Softbank’s struggles in AI investments could be an early sign that AI stocks will become less attractive. Retirement planning is not just about picking the right investments, as the difference between accumulation and distribution can impact retirement plans. Many Americans find they can retire earlier than expected after answering three simple questions.

Consider taking a few minutes to learn more about retirement planning to potentially retire earlier than expected. The market’s response to Softbank’s AI investments serves as a cautionary tale for the future of AI stocks.

Read more at Yahoo Finance: Softbank Drops 40% As Investors Dump AI Bet