SoftBank Group shares fell 12.5% in Tokyo on Friday after reports that OpenAI is considering delaying its initial public offering until 2027, potentially postponing a major liquidity event for one of its largest investors.

The stock dropped as much as 13% during the session before closing 12.53% lower. SoftBank was among the largest drags on Japan’s Nikkei 225, which ended the day down about 4%.

OpenAI’s financial advisers reportedly presented executives with two options. The company could pursue an offering this year at a lower valuation or wait until 2027 and continue seeking a valuation of as much as $1 trillion.

CEO Sam Altman reportedly opposed reducing the target valuation to accelerate the listing.

OpenAI submitted a confidential draft registration statement to the Securities and Exchange Commission earlier this month. However, the company said at the time that it had not decided when to proceed and that it could remain private for longer.

OpenAI has not formally announced a revised IPO timetable.

SoftBank’s exposure to OpenAI

SoftBank agreed in February to invest an additional $30 billion in OpenAI. Once completed, the investment would bring its cumulative commitment to $64.6 billion and give the Japanese group an ownership interest of approximately 13%.

That exposure has made SoftBank shares increasingly sensitive to changes in OpenAI’s valuation and potential listing schedule.

SoftBank climbed to a record high in May as investors anticipated large valuation gains from a possible OpenAI IPO. A delayed listing would not change SoftBank’s ownership stake, but it could postpone the establishment of a public market valuation and limit the company’s ability to monetize part of its position.

The selloff came two days after SoftBank founder Masayoshi Son defended the company’s aggressive AI strategy and rejected concerns that the surge in artificial intelligence investment represents a bubble.