r/wallstreetbets
SoftBank shares fall 9% after its attempt to get $6 Billion OpenAI margin loan fails
SoftBank shares drop 9% after failing to secure a $6B margin loan for its OpenAI investment.
- Failed to secure a $6B margin loan, highlighting liquidity constraints or lender skepticism.
- Stock price dropped 9% on the news, reflecting severe negative market sentiment.
- Aggressive leverage attempts for OpenAI investments expose the company to substantial financial risks.
So, this is where it begins
Patrick Boyle said it well: ’if you care about fundamentals, look at the loan market. If you care about vibes, look at the stock market’
Don’t forget what they did in 2023…regional banks took a shit and they sure did too being over concentrated in AI
None of the jobs AI took are coming back regardless.
Nobody is going to pay the true cost of AI. They are gambling on the fact that we will get addicted to it while it's heavily subsidized and injected into our lives. I think we will honestly reject AI. Anything seemingly fake will be deemed toxic, and it's damn justified.
I used to work on the crews that built the offices in NYC. The construction side felt like it was run by all the CEO's Albanian homeboys. Like a weird fucked up Mafia. Some of the worst projects I ever worked on. They openly tossed cash at inspectors and spent so much stupid money forcing an open ceiling plan in EVERY room.
Leave Murdoch holding the bag?
Someone watched Shark Tank recently
Banks getting rejected for loans to dump into AI. That’s probably a good sign
Money is limited and probably tied to Space X IPO budget
Plus none of us here put money in a bank so fractional reserve fails to provide liquidity the market needs.
Call or Put?
What’s another 6B
Eventually open source will win
Except the chips are lasting much longer than 1-3 years and the cost to rent time on them is rising not falling
So AI companies are losing even more money if they rent them. Noted.
Too many pleas like that and eventually someone notices you’re desperate, gets REALLY nervous, and calls your hand. Then shit gets real. If SoftBank starts franchising Wendy’s builds near their corporate office locations… pack it up and turn out the lights.
How much of ARM do they own?
From the sounds of their IPO announcement, OpenAI may not go IPO this year:
"We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company. "
Could that cause Softbank to go bankrupt, because they have a $40 billion bridge loan which matures in 2027? The only way they can pay it back is from the IPO