SoftBank Seeks $5 Billion Loan Backed by Arm Shares to Fuel AI Investments

SoftBank is seeking $5 billion loan to invest in OpenAI, plans to use Arm shares as collateral -- rapid AI expansion continues, investment could top $30 billion

SoftBank has a growing appetite for cash on its path towards becoming a major AI force. SoftBank is arranging a new $5 billion margin loan to invest in OpenAI and use its shares in Arm Holdings as collateral, reports Bloomberg. The move will enable the company to increase its stake in OpenAI and/or invest in the company's infrastructure, while taking the company's total borrowing against Arm shares to $18.5 billion. The Japanese investment company is said to be negotiating with several international banks to finalize the deal, which will be collateralized by Arm stock. The company had already tapped $13.5 billion in margin loans from Arm shares by March 2025, with $5 billion still unused at that time, which gives it some flexibility to expand its credit base further. The approach is not uncommon for SoftBank, as it is usual practice for the company to draw cash from its most valuable asset rather than sell equity. Arm's shares were up 38% this year, which gives Softbank more collateral room. SoftBank's campaign to become a dominant force in the AI sector has become increasingly costly. The company joined the $500 billion Stargate project with OpenAI and Oracle to build massive U.S. data center infrastructure early this year, pledged up to $30 billion to OpenAI, purchased ABB's robotics business for $5.4 billion, took over Graphcore for an undisclosed sum, and agreed to purchase Ampere Computing for $6.5 billion. Bloomberg Intelligence's Sharon Chen estimates SoftBank's total financing needs could surpass $30 billion, considering the possible purchase of Ampere Computing and other ventures. The latest borrowing follows a series of large financings tied to the AI push. SoftBank previously arranged $8 billion in margin loans ahead of Arm's 2023 IPO through lenders such as JPMorgan Chase, Barclays, BNP Paribas, Crédit Agricole, and Goldman Sachs, and later secured a $15 billion one-year loan to fund AI projects in the U.S. Together, these moves have transformed Arm's stock into the group's main source of liquidity. The analyst warned that these commitments could push the group close to its 25 % loan-to-value threshold, raising concerns about its credit profile. While SoftBank may use asset sales or structured financing to offset risk, its growing demands for cash highlight how heavily its strategy depends on the market value of Arm and the continued strength of AI-related equities. On the one hand, this puts SoftBank at the center of the AI boom, but on the other hand, it also places it at the frontier of its potential instability.

SoftBank in Talks for $5 Billion Margin Loan Backed by Arm Stock

SoftBank Group Corp. is in talks to borrow $5 billion from global banks, refilling its coffers at a time Masayoshi Son is accelerating the Japanese investment firm's bets on artificial intelligence. SoftBank is close to signing a deal with a handful of lenders for a margin loan secured by shares of its chip unit Arm Holdings Plc., people familiar with the matter said. The capital will fund additional investment in OpenAI this year, the people said, who asked not to be identified discussing private matters.

SoftBank Seeks $5 Billion Arm-Backed Loan to Expand Global AI Investments

SoftBank Aims to Raise $5 Billion Backed by Arm Shares to Strengthen its Position in the Global AI Race SoftBank Group Corp. reportedly discusses a $ 5 billion margin loan with various international banks. The loan is secured by the shares of its chip subsidiary, Arm Holdings Plc., and is expected to boost SoftBank's liquidity as it increases its investments in artificial intelligence. Sources close to the issue indicated that the funds will enable the company to continue its partnership with and other AI-related projects. The transaction would increase the total amount of margin loans that SoftBank has as collateral for Arm to approximately. By March 2025, the company had received loans totaling $13.5 billion, with an additional $5 billion still outstanding. This is anticipated to be funded after previous loans secured by major financial institutions, such as JPMorgan Chase, Barclays, and Goldman Sachs, which had earlier associated the IPO requirements of Arm with Softbank's credit resources.