SoftBank’s $6B OpenAI-backed loan stalls as tech rout deepens

SoftBank shares slid sharply in Tokyo on Wednesday after Bloomberg reported its $6 billion margin loan backed by its OpenAI stake had stalled.reuters
The failed financing adds pressure amid a global tech sell-off, with Goldman Sachs ↘0.23% and Barclays ↘0.08% warning AI trade crowding has hit historic extremes.futunn
Investors are liquidating tech positions to raise cash for SpaceX’s planned June 12 Nasdaq ↘1.26% debut, which targets a record $75 billion raise, according to Reuters.reuters

Tech Stocks Slide as AI Valuation Fears and SpaceX IPO Liquidity Drain Weigh on Markets

A cascading sell-off in technology stocks deepened this week as fears over inflated artificial intelligence valuations collided with a liquidity squeeze ahead of SpaceX’s record-breaking initial public offering, set for Friday, June 12.

SoftBank Stumbles, Asia Reels

SoftBank shares plunged more than 8% in Tokyo on Tuesday after Bloomberg News reported that the Japanese conglomerate’s talks with potential creditors to secure at least $6 billion through a margin loan backed by its OpenAI stake had stalled. The company had already reduced its initial target from $10 billion, and people familiar with the matter said SoftBank is now exploring alternative fundraising options.reuters

The broader Asian tech rout continued Monday and Tuesday, with South Korea’s Kospi falling sharply and Japan’s Nikkei 225 extending losses. Samsung Electronics and SK Hynix were among the hardest hit in Seoul.fortune

SpaceX IPO Pulls Capital From Incumbents

CNBC’s Jim Cramer said investors are liquidating winning positions in stocks like CrowdStrike and Broadcom to free up cash for SpaceX and Anthropic’s upcoming offerings. “The sellers just want these stocks off their sheets,” Cramer said on his show. “They are prepared to sell it lower than this.”thestreet

SpaceX is targeting a $1.75 trillion valuation at $135 per share, aiming to raise as much as $75 billion in what would be the largest IPO in history. The company plans to list on the Nasdaq under the ticker “SPCX” on June 12. Qualcomm dropped roughly 6% on June 5 amid a semiconductor sell-off triggered by Broadcom’s weak guidance and a stronger-than-expected jobs report.wsj

Wall Street Warns of Structural Risks

Goldman Sachs and Barclays jointly warned that last Friday’s sharp sell-off — which saw the Nasdaq Composite lose 4.18% and the iShares Semiconductor ETF drop 10% — should not be viewed as a one-off event. According to Goldman Sachs data, crowding on the long side of momentum strategies has reached an all-time high, while the coming wave of AI company IPOs threatens to divert liquidity from existing equities.futunn

“Extreme crowding in AI-driven trading is pushing equity markets toward a fragile tipping point,” Goldman and Barclays analysts wrote, adding that if volatility intensifies, systematic funds could trigger a chain reaction of deleveraging.futunn