SoftBank deepens AI investment push as UK deal activity accelerates

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SoftBank AI investment surge

Highlights

SoftBank committed $64.6bn for a 13 per cent stake in OpenAI and pledged up to €75bn for a data centre rollout in France, expanding its global AI infrastructure presence.
SoftBank trades at about a 50 per cent discount to net asset value, and its 17 per cent loan-to-value ratio relies heavily on the asset value of Arm and market strength.
UK M&A value more than doubled to $324bn through late June with overseas acquisitions of UK assets nearly tripling to almost $200bn, raising concerns about reduced local listings.

SoftBank expands financing around AI bets

As reported by the Financial Times, SoftBank has committed $64.6bn to OpenAI for an eventual stake of roughly 13 per cent, placing the Japanese technology investor at the centre of the current AI boom. The group is relying in part on the value created by UK chip designer Arm, in which it owns about 90 per cent, to support these increasingly ambitious investments.

Investors remain wary of the strategy despite a recent rise in SoftBank’s share price. The company trades at roughly a 50 per cent discount to its net asset value, and some analysts and investors argue that Son has yet to fully convince the market of the merits of his long-term plan.

Another point of concern is SoftBank’s financing structure, which includes borrowing against successful assets such as Arm to fund newer AI positions. The group’s stated 17 per cent loan-to-value ratio at the end of March has benefited from higher asset prices, but that cushion could narrow quickly if markets weaken.

SoftBank is also broadening its operational role in AI infrastructure. The company is developing a $33bn gas-fired power plant in Ohio to support one of its data centres and has pledged up to €75bn for a data centre rollout in France, extending its influence beyond Japan into global AI capacity building.

UK takeover wave lifts advisers but raises market concerns

The UK deal market is also gathering pace this summer, with total merger and acquisition value more than doubling from a year earlier to $324bn through late June. Data from London Stock Exchange Group show acquisitions of UK assets by overseas buyers have more than tripled to nearly $200bn, boosting activity for investment banks, law firms and communications advisers.

Recent transactions include Castlelake’s outline agreement on a £5.5bn takeover of easyJet, Comcast’s £1.6bn deal through Sky to acquire ITV’s television business, and Novartis’s $1.5bn agreement to buy Myricx Bio. Other notable proposals include KKR and Energy Capital Partners’ planned £5.7bn acquisition of DCC and Prologis’s proposed £12.6bn takeover of Segro.

Advisers and investors cite undervalued UK shares and pressure for consolidation as key drivers of the increase in inbound bids, with the rise of AI leaders also reshaping strategy across industries. Even so, there is unease in the City because assets are being sold faster than new listings are arriving, leaving hopes that the summer takeover spree will eventually be followed by a stronger IPO pipeline.

Outside the UK, corporate dealmaking is also extending into materials. Solstice Advanced Materials has agreed a $14.5bn combination with Element Solutions, using strong post-spin-off share performance to pursue rapid expansion only months after separating from Honeywell.

In our earlier analysis of TSMC’s revenue surge and stock outlook, we highlighted how accelerating AI-driven chip orders were lifting sales and pushing the company toward the upper end of its 2026 capex guidance. We also noted that, despite a bullish longer-term structure, short-term overbought signals pointed to a likely consolidation range, meaning investors should watch for signs of buyer fatigue even as AI demand remains a key tailwind.

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