SoftBank seeks record $40 billion loan to fund OpenAI investment as AI bet intensifies

SoftBank Seeks Record Loan of Up to $40 Billion for OpenAI Stake

SoftBank Group Corp. is seeking a loan of as much as $40 billion to mostly help finance its investment in US tech giant OpenAI, according to people familiar with the matter, in what would be its largest-ever borrowing denominated solely in dollars. The bridge loan would have a tenor of about 12 months, according to some of the people, who asked not to be identified discussing private matters. Four lenders, including JPMorgan Chase & Co., will be underwriting the facility, the people said. Talks with banks are ongoing and details could change, the people added. Spokespeople for JPMorgan and SoftBank declined to comment. 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 Masayoshi Son's Next Great Hope is Taking Nvidia's AI Crown The potential size of the loan underscores SoftBank founder Masayoshi Son's aggressive bid to try and position his company as a linchpin in the global AI boom. The $30 billion bet on OpenAI comes on top of more than $30 billion the company has already injected into the startup, which now forms the centerpiece of Son's ambitions -- a gamble reminiscent of his early investments in ByteDance Ltd. or Alibaba Group Holding Ltd., but at a far higher price. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg may send me offers and promotions. Plus Signed UpPlus Sign UpPlus Sign Up By submitting my information, I agree to the Privacy Policy and Terms of Service. The Japanese company, which held about 11% in OpenAI at the end of December, has unloaded assets including its stake in Nvidia Corp. to bankroll its growing bet on OpenAI. The US company now represents one of SoftBank's biggest holdings, alongside a roughly 90% stake in chip designer Arm Holdings Plc, even as investments elsewhere slow. That's tethered the Japanese company's shares to ChatGPT's relative performance against Google's Gemini and Anthropic PBC's Claude. Still, the scale of SoftBank's bet -- as well as persistent concerns about a bubble given the lack of a truly mainstream use case for AI services -- has spooked market observers. This week, S&P lowered SoftBank's credit outlook, citing the danger that its investments in OpenAI may hurt the Japanese company's liquidity and the credit quality of its assets. What Bloomberg Intelligence Says SoftBank Group's $30 billion investment in OpenAI is a further drag to its credit profile, with the company facing limited headroom under S&P's 35% adjusted LTV threshold. It has been relying on debt and asset sales to fund more than $70 billion of AI investments since 2025, resulting in a large debt burden and weaker portfolio quality. An uncertain macro backdrop and concerns around an AI bubble poses risk to SoftBank's LTV and the timing of an OpenAI listing -- a key positive catalyst. SoftBank needs to raise as much as $40 billion this year. It benefits from strong access to the yen market and can raise more than $10 billion from the sale of T-Mobile and listed tech stocks, excluding Arm. Its bonds are likely to remain volatile, with supply risk and potential risk-off posing spread widening pressure. - Sharon Chen, analyst Click hereBloomberg Terminal for the research. SoftBank has also shelled out on smaller bets beyond Sam Altman's startup. SoftBank and OpenAI have jointly invested $1 billion in SB Energy, an infrastructure company working with tech firms on a US buildout of data centers. The company has also agreed to buy private equity firm DigitalBridge Group Inc. for about $3 billion in cash. Last year, it bought US chip designer Ampere Computing LLC for $6.5 billion and proposed a $5.4 billionBloomberg Terminal acquisition of ABB Ltd.'s robotics unit. All these investments underscore the need for the tech investor to take on large sums of debt. The company has already increased the amount of its margin loans secured by mobile unit SoftBank Corp. and chip unit Arm.

SoftBank seeks up to $40 billion loan to finance OpenAI investment - The Economic Times

SoftBank is seeking up to $40 billion in loans, mainly to back its $30 billion investment in OpenAI. The Japanese firm has sold assets, increased debt, and made other AI-related acquisitions, raising concerns about liquidity, credit quality, and exposure amid an uncertain AI market and possible bubble.SoftBank is seeking a loan of as much as $40 billion to mostly help finance its investment in US tech giant OpenAI, according to people familiar with the matter, in what would be its largest-ever borrowing denominated solely in dollars. The bridge loan would have a tenor of about 12 months, according to some of the people, who asked not to be identified, discussing private matters. Four lenders, including JPMorgan Chase & Co., will be underwriting the facility, the people said. Talks with banks are ongoing and details could change, the people added. Spokespeople for JPMorgan and SoftBank declined to comment. The potential size of the loan underscores SoftBank founder Masayoshi Son's aggressive bid to try and position his company as a linchpin in the global AI boom. The $30 billion bet on OpenAI comes on top of more than $30 billion the company has already injected into the startup, which now forms the centrepiece of Son's ambitions -- a gamble reminiscent of his early investments in ByteDance Ltd. or Alibaba Group Holding Ltd., but at a far higher price. The Japanese company, which held about 11% in OpenAI at the end of December, has unloaded assets including its stake in Nvidia Corp. to bankroll its growing bet on OpenAI. The US company now represents one of SoftBank's biggest holdings, alongside a roughly 90% stake in chip designer Arm Holdings Plc, even as investments elsewhere slow. That's tethered the Japanese company's shares to ChatGPT's relative performance against Google's Gemini and Anthropic PBC's Claude. Still, the scale of SoftBank's bet -- as well as persistent concerns about a bubble given the lack of a truly mainstream use case for AI services -- has spooked market observers. This week, S&P lowered SoftBank's credit outlook, citing the danger that its investments in OpenAI may hurt the Japanese company's liquidity and the credit quality of its assets. What Bloomberg Intelligence says SoftBank Group's $30 billion investment in OpenAI is a further drag to its credit profile, with the company facing limited headroom under S&P's 35% adjusted LTV threshold. It has been relying on debt and asset sales to fund more than $70 billion of AI investments since 2025, resulting in a large debt burden and weaker portfolio quality. An uncertain macro backdrop and concerns around an AI bubble poses risk to SoftBank's LTV and the timing of an OpenAI listing -- a key positive catalyst. SoftBank needs to raise as much as $40 billion this year. It benefits from strong access to the yen market and can raise more than $10 billion from the sale of T-Mobile and listed tech stocks, excluding Arm. Its bonds are likely to remain volatile, with supply risk and potential risk-off posing spread widening pressure. SoftBank has also shelled out on smaller bets beyond Sam Altman's startup. SoftBank and OpenAI have jointly invested $1 billion in SB Energy, an infrastructure company working with tech firms on a US buildout of data centers. The company has also agreed to buy private equity firm DigitalBridge Group Inc. for about $3 billion in cash. Last year, it bought US chip designer Ampere Computing LLC for $6.5 billion and proposed a $5.4 billion acquisition of ABB Ltd.'s robotics unit. All these investments underscore the need for the tech investor to take on large sums of debt. The company has already increased the amount of its margin loans secured by mobile unit SoftBank Corp. and chip unit Arm.

SoftBank eyes up to $40 billion loan to fund OpenAI investment, Bloomberg News reports

March 6 (Reuters) - Japanese conglomerate SoftBank is seeking a loan of up to $40 billion, primarily to finance its investment in ChatGPT-maker OpenAI, Bloomberg News reported on Friday, citing people familiar with the matter. The bridge loan would hold a roughly 12-month tenor, Bloomberg reported, with four lenders, including JPMorgan , underwriting the facility. Talks with banks are ongoing, and terms could change, according to the report. Reuters could not immediately verify the report. OpenAI and SoftBank did not immediately respond to Reuters' request for a comment. SoftBank Chief Executive Masayoshi Son has made an "all in" bet on OpenAI, ramping up investment in artificial intelligence. The Japanese firm held a stake of about 11% in OpenAI at the end of last year. OpenAI is laying the groundwork for an IPO that could value the company at up to $1 trillion, Reuters exclusively reported last year. Last month, the firm said it would raise $110 billion in a funding round that could value it at $840 billion, including $30 billion each from SoftBank and U.S. chipmaker Nvidia , and $50 billion from e-commerce retailer Amazon . (Reporting by Gursimran Kaur in Bengaluru; Editing by Sherry Jacob-Phillips)