SoftBank Seeks $10 Billion OpenAI Loan
SoftBank Group is seeking another $10 billion loan to finance its large investment in OpenAI. The move adds to a growing series of financing arrangements tied to the Japanese technology group’s AI strategy.
The proposed facility would run for two years. Moreover, it would carry an interest margin of about 275 basis points above the Secured Overnight Financing Rate, or SOFR. Mizuho Bank would act as the mandated lead arranger and bookrunner, according to people familiar with the matter.
Loan Could Help Refinance Bridge Debt
SoftBank secured a $40 billion bridge facility in March to support its OpenAI investments. However, that facility matures in March 2027, creating pressure to replace the short-term borrowing with longer-term financing.
Therefore, the new $10 billion facility could help repay part of that bridge loan. SoftBank’s own financial report says it plans to use several forms of takeout financing to replace the bridge facility. It also identifies asset-backed financing as a primary option.
Meanwhile, SoftBank has continued building its OpenAI position. The company expects its total investment in OpenAI to approach $65 billion by October.
SoftBank Expands AI Financing Strategy
The proposed loan comes shortly after SoftBank secured another $10 billion facility linked to its OpenAI stake. Consequently, the latest financing effort highlights the scale of the company’s exposure to the AI sector.
In addition, SoftBank is considering a bond offering worth between $10 billion and $20 billion. The proceeds could also help refinance debt associated with its investment in OpenAI.
SoftBank is also preparing a record ¥1 trillion, or about $6.3 billion, retail bond sale in Japan. The company plans to use the broader financing strategy to support its AI commitments and manage existing obligations.
However, the strategy carries financial risks. OpenAI remains privately held, which makes its shares harder to value and use as collateral. Lenders previously raised concerns over that valuation challenge.
Still, SoftBank’s approach reflects its determination to expand its AI exposure. At the same time, the company must balance further investment with refinancing needs and rising leverage.
