SoftBank Seeks $16.5 Billion Loan for Massive AI Investments, Including Potential OpenAI Funding

SoftBank Seeks Record $16.5 Billion Loan for AI Projects in US

SoftBank Group Corp. is seeking a loan of as much as $16.5 billion to help fund artificial intelligence investments in the US, according to people familiar with the matter, in what would be the tech investor's largest-ever facility denominated solely in dollars. The bridge loan under discussion has a tenor of about 12 months, said the people, who asked not to be identified discussing private matters. Talks with banks are in early stages and details may change over the coming weeks, the people added.

SoftBank Weighs $16.5 Billion Loan That Could Back OpenAI's $40 Billion Raise: Report - SoftBank Group (OTC:SFTBF), SoftBank Group (OTC:SFTBY)

SoftBank Group Corp SFTBF SFTBY is weighing a loan of up to $16.5 billion to finance its U.S. artificial intelligence ambitions. The bridge loan would have a term of about 12 months. The loan may help SoftBank lead a $40 billion funding round in OpenAI, Bloomberg reported, citing unnamed sources familiar with the matter. The move values the ChatGPT parent at $300 billion. Also Read: Arm Aims for 50% Data Center CPU Market Share by 2025, Challenging Intel and AMD The Japanese tech investor remains engaged in its $500 billion AI infrastructure project in the U.S., along with other projects in robotics and semiconductors. The Japanese company is partnering with OpenAI, Oracle Corp, and Abu Dhabi's MGX on the Stargate AI deal. On Tuesday, Japan Credit Rating Agency and S&P Global Ratings flagged potential financial strains for SoftBank from its financing needs. SoftBank's founder and chief, Masayoshi Son, has frequently obtained large loans from creditors. SoftBank is considering a $1 trillion investment in U.S. AI industrial parks using autonomous robots. SoftBank may reportedly become OpenAI's top backer, investing up to $25 billion, surpassing Microsoft Corp's MSFT $14 billion stake. OpenAI expects to more than triple its revenue this year to $12.7 billion from $3.7 billion in 2024 and sales to increase to $29.4 billion in 2026. Still, OpenAI does not expect to be cash-flow positive until 2029, when it projects revenue to top $125 billion as it grapples with AI development costs. Read Next: In Geopolitical Chess, China's Latest Energy Norms Block Nvidia's Chip Strategy Amid US Sanctions Photo: Shutterstock SFTBFSoftBank Group Corp $62.2723.9% Overview SFTBYSoftBank Group Corp $25.21-0.02% MSFTMicrosoft Corp $380.561.38% Market News and Data brought to you by Benzinga APIs

SoftBank Reportedly Aims to Borrow $16 Billion for AI 'Stargate' | PYMNTS.com

SoftBank is reportedly seeking up to $16.5 in financing for the so-called "Stargate" AI project. This bridge loan would be the Japanese conglomerate's largest ever facility denominated in dollars, Bloomberg News reported Tuesday (April 1), citing sources familiar with the matter. The report notes that SoftBank is looking for financing as it tries to launch a $500 billion artificial intelligence (AI) infrastructure effort in the U.S., as well as robotics and semiconductor projects. While the company is working with OpenAI, Oracle and Dubai's MGX on the Stargate project, SoftBank is the primary financier. Announced by President Donald Trump in January, Stargate aims to build big AI-focused data centers in the U.S., with the first of these centers -- a 500,000-square-foot facility -- being planned for Abilene, Texas. Sources told Bloomberg the bridge loan could help SoftBank as it prepares to lead OpenAI's $40 billion funding round, which is being called the largest financing round of all time, and which could value the startup at $300 billion. SoftBank CEO Masayoshi Son said in December the company would invest $100 billion in the United States in the next four years, creating at least 100,000 jobs focused on AI and related infrastructure. The executive made the announcement at Mar-a-Lago, home to then-President-elect Trump. "My confidence level on the economy of the United States has tremendously increased with his victory," Son said. "President Trump is a double-down president. I'm going to have to double down." More recent reports have SoftBank planning to invest $1 trillion in AI infrastructure projects in the U.S. A report last week by Japan's Nikkei outlined that effort, which would include robots designed to help American employers dealing with labor shortages. The news follows reports Monday (March 31) that large portions of that funding are contingent on OpenAI's efforts to restructure into an independent for-profit company. If the company can't reach that goal by year's end, a provision in the round would limit the financing to $20 billion, the Wall Street Journal reported. Another report from CNBC also mentions a similar provision, but said the funding would be reduced by $10 billion if OpenAI can't make the for-profit switch before the end of the year.