SoftBank Secures $11.87 Billion Loan to Boost OpenAI Investment

TechFlow reported that on September 14, SoftBank Group secured a $11.87 billion loan to support its investment in US artificial intelligence company OpenAI, exceeding the previously targeted $10 billion. Sources said the Japanese conglomerate finalized this two-year financing last week, with approximately 20 banks committing to participate. The latest borrowing will further add to SoftBank’s recent debt-financing activities linked to its bets on OpenAI, including a $10 billion margin loan secured by its OpenAI stake, and potential bond issuances of up to $20 billion, despite market concerns over rising credit risks in the AI sector.

Last week, SoftBank announced it would repay the $40 billion loan balance obtained earlier this year to fund its OpenAI investment. According to the statement, the company plans to repay the $25.9 billion owed on September 15. This unsecured borrowing was originally scheduled to mature in March next year. Meanwhile, SoftBank will meet with investors in New York later this week to gauge interest in a potential US dollar junk bond issuance. Sources last month said the company is considering raising $10 billion to $20 billion through a bond offering.