SoftBank secures record $40 billion bridge loan to expand OpenAI stake and AI ambitions

SoftBank Secures Record $40 Billion Bridge Loan for OpenAI Stake

SoftBank Group Corp. signed a loan of $40 billion to finance its investment in OpenAI, adding to the Japanese company's debt load as it seeks to stay abreast of a global artificial intelligence race. The non-collateralized bridge loan, which will mature in 12 months, will be used for SoftBank's $30 billion follow-on investment in OpenAI as well as for other costs, the company said in a statement on Friday. JPMorgan Chase & Co., Goldman Sachs Group Inc., Mizuho Bank, Sumitomo Mitsui Banking Corp. and MUFG Bank are underwriting the facility, which will be paid partly through the sale of assets, it said. The loan, first reported by Bloomberg, is SoftBank's largest-ever borrowing denominated solely in dollars. Its size reflects founder Masayoshi Son's determination to position his company at the center of a global AI boom. Arm Rallies After Predicting Booming Sales From New Chip Line SoftBank Hits Brakes on Talks to Buy Data Center Firm Switch Masa Son Pitches $1 Trillion US AI Hub to TSMC, Trump Team SoftBank Stargate Venture With OpenAI Snags on Tariff Fears SoftBank's latest bet on OpenAI comes on top of more than $30 billion the company has already injected into the startup, which is now one of its biggest holdings alongside a roughly 90% stake in chip designer Arm Holdings Plc. Arm's shares are up more than 40% this year, boosted by its plans to sell its own chips. That's a boon for SoftBank, which has stakes in hundreds of unlisted startups, and its ability to finance big bets in AI. What Bloomberg Intelligence Says SoftBank's exposure to AI semiconductors will rise with Arm's decision to sell its own chips, and synergies within SoftBank's AI ecosystem are possible as OpenAI is on the list of initial buyers. Arm's business operations will change as its market expands to selling chips from just designing, with management targeting $15 billion in annual revenue in five years compared with $5 billion in 2025, though with lower margins. Click hereBloomberg Terminal for the research

SoftBank secures $40 billion loan to boost OpenAI investments

SoftBank Group said on Friday it has secured a US$40 billion bridge loan to bolster investments investments in ChatGPT-maker OpenAI and for general corporate purposes, marking another significant step in its artificial intelligence strategy. The Japanese investment conglomerate, led by founder Masayoshi Son, continues to strengthen ties with OpenAI as global tech firms race to gain an edge in the increasingly competitive generative AI space. The Japanese investor has previously agreed to invest $30 billion in OpenAI through its Vision Fund 2. The bridge loan is unsecured, the company said. The loan, which matures in March 2027, was arranged with lenders including JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corp and MUFG Bank. OpenAI, backed by Microsoft, has emerged as a leading player following the widespread adoption of ChatGPT, prompting a surge in investment across the sector. The loan underscores Son's increasingly aggressive bet on AI following years when SoftBank swung between outsized gains and heavy Vision Fund losses. SoftBank and OpenAI were among the companies behind the Stargate Project last year, which said it aimed to invest up to $500 billion over four years to build AI infrastructure in the United States. Son and then U.S. President-elect Donald Trump announced in December 2024 that SoftBank planned to invest $100 billion in AI and related infrastructure in the U.S. over four years.