SoftBank

Masayoshi Son called superintelligence in the wrong hands “super dangerous” and urged joint government oversight of the most powerful models. SoftBank has so far invested nearly $65 billion in OpenAI, mostly with borrowed money at high interest. Son remains long-term optimistic about AI-driven growth but faces the tension between regulation that could slow development and pressure to monetize the investments already made. » More on deraktionaer.de

The Nikkei rose by around two percent, led by gains in technology stocks; Softbank gained more than six percent, and Tokyo Electron and Advantest also advanced. Taiyo Yuden climbed sharply at times after forming an alliance with TDK. High oil prices and sharply higher US bond yields — reaching levels above 5.6 percent for 30-year paper — are weighing on global equity markets. Chinese markets reacted mutedly to a disappointing stimulus package and are heading for their largest quarterly loss in more than four years. » More on handelsblatt.com

Softbank issued dollar and euro tranches totaling about $11 billion and is offering investors yields of up to 9.75 percent (up to ten percent reported). Part of the proceeds is to go to a capital increase at OpenAI; Softbank plans to boost its commitment to OpenAI to $65 billion by October and to invest more heavily in other AI companies. The issuance was oversubscribed but provoked a split market reaction, as high yields and a BB+ credit rating reflect the risks of Son’s aggressive AI strategy. » More on handelsblatt.com