SoftBank Aims to Secure $22.5 Billion for OpenAI by Year-End, Considering Arm Stake to Support Debt Amid Rising AI Investment Demands: Report | Intellectia.AI
SoftBank Aims to Secure $22.5 Billion for OpenAI by Year-End, Considering Arm Stake to Support Debt Amid Rising AI Investment Demands: Report
Written by Emily J. Thompson, Senior Investment Analyst
SoftBank's Funding Strategy: SoftBank Group is working to raise $22.5 billion for OpenAI by year-end, utilizing asset sales and borrowing, while significantly reducing other investments and deal-making activities.
Asset Sales and Financial Maneuvering: The company has sold its entire stake in Nvidia and a significant portion of T-Mobile shares, and is considering monetizing other assets, including its stake in Didi Global.
OpenAI's Financial Needs: The funding is part of a larger commitment from SoftBank to invest up to $30 billion in OpenAI, which has recently transitioned to a for-profit structure and faces rising operational costs amid increasing competition.
Potential IPO and Valuation: OpenAI is exploring a massive funding round of up to $100 billion, aiming for a valuation of around $750 billion, with plans for a significant IPO possibly as early as 2026.
Wall Street analysts forecast TMUS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TMUS is 265.42 USD with a low forecast of 220.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
Wall Street analysts forecast TMUS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TMUS is 265.42 USD with a low forecast of 220.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 185.390
Low
220.00
Averages
265.42
High
310.00
Current: 185.390
Low
220.00
Averages
265.42
High
310.00
Bernstein
Market Perform
downgrade
$265 -> $245
2026-01-16
Reason
Bernstein
Price Target
$265 -> $245
AI Analysis
2026-01-16
downgrade
Market Perform
Reason
Bernstein lowered the firm's price target on T-Mobile to $245 from $265 and keeps a Market Perform rating on the shares. The firm believes we are entering a new era of competition in the industry. Each quarterly update in 2025 reflected worsening competitive dynamics, erasing much of the Telco gains achieved in the first half of the year, while Cable companies continued to decline through the second half, Bernstein argues. This heightened competitive intensity is set to persist in 2026, with little sign of relief given recent strategic actions, it adds.
Scotiabank
Outperform -> NULL
downgrade
$278
2026-01-07
Reason
Scotiabank
Price Target
$278
2026-01-07
downgrade
Outperform -> NULL
Reason
Scotiabank lowered the firm's price target on T-Mobile to $270.50 from $278 and keeps an Outperform rating on the shares. The firm is updating its price targets for Telecommunication Services under its coverage ahead of Q4 results, the analyst tells investors. The firm notes that while promotional intensity in wireless was elevated during the holiday season, revenue and EBITDA industry growth remains positive.
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Citi
Michael Rollins
Neutral
downgrade
$268 -> $220
2025-12-19
Reason
Citi
Michael Rollins
Price Target
$268 -> $220
2025-12-19
downgrade
Neutral
Reason
Citi analyst Michael Rollins lowered the firm's price target on T-Mobile to $220 from $268 and keeps a Neutral rating on the shares.
Wolfe Research
Outperform
to
Market Weight
downgrade
$290 -> $253
2025-12-15
Reason
Wolfe Research
Price Target
$290 -> $253
2025-12-15
downgrade
Outperform
to
Market Weight
Reason
Wolfe Research lowered the firm's price target on T-Mobile to $253 from $290 and keeps an Outperform rating on the shares. The firm adjusted ratings and targets in the media and entertainment and telecom and cable sectors as part of its 2026 outlook. Wolfe recommends being overweight live entertainment and music. It downgraded the telecom and cable group to Market Weight, saying it sees "no relief" from the key performance indicator deterioration seen in the second half of 2025.
About TMUS
T-Mobile US, Inc. is a provider of wireless communications services, including voice, messaging and data, under its flagship brands, T-Mobile and Metro by T-Mobile, and Mint Mobile, in the United States, Puerto Rico and the United States Virgin Islands. It provides wireless communications services primarily using its 4G Long Term Evolution network and its 5G technology network. It also offers a selection of wireless devices, including handsets, tablets and other mobile communication devices, and accessories for sale, as well as financing through equipment installment plans. Its primary service plan offering is Go5G Plus, which includes unlimited talk, text and data on its network, 5G access at no extra cost, scam protection features and more. In addition to its wireless communications services, the Company also offers high speed Internet, which includes a fixed wireless product that utilizes the excess capacity of its nationwide 5G network. It also provides advertising solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
