SoftBank stock investors see past credit risks to AI returns

SoftBank's credit default swaps hit their highest level since 2023 amid concerns over artificial intelligence safety, rising costs and intensifying competition. SoftBank Group's equity investors are increasingly focused on the potential returns from its artificial intelligence bets, helping the stock rebound even as the Japanese company faces higher borrowing costs. SoftBank shares posted their first monthly gain in four months in September, after OpenAI's new GPT-6 Astra model rekindled optimism around Masayoshi Son's $65 billion commitment to the ChatGPT creator. The stock rose 24% in four weeks, helped by OpenAI's latest plan to raise $30 billion at a valuation of $1.4 trillion. A recovery in chip unit Arm Holdings shares also bolstered confidence about the tech investor's ability to finance growing debt.