SoftBank Seeks Another $10 Billion Loan To Fund Its Nearly $65 Billion OpenAI Investment

SoftBank is lining up another $10 billion loan as it seeks to raise more cash for its huge investment in OpenAI, adding to a growing pile of debt linked to the Japanese technology group’s artificial intelligence bet.

SoftBank Seeks $10 Billion Loan To Fund OpenAI Investment

The two-year facility is expected to carry an interest margin of about 275 basis points above the Secured Overnight Financing Rate, according to people familiar with the matter.

Mizuho Bank is acting as mandated lead arranger and bookrunner.

The financing could help SoftBank manage the costs of its planned investment in OpenAI, which is expected to reach close to $65 billion by October.

Commitments for the new loan are due by 31 August, with banks already discussing participation in the facility, the people said.

New Loan Could Help Repay $40 Billion Bridge Financing

Part of the proceeds could be used to repay a $40 billion bridge loan that SoftBank secured earlier this year to finance its OpenAI investment.

The latest borrowing adds to a series of financing arrangements tied to the deal, as SoftBank looks for ways to fund its large commitment without relying on a single source of capital.

The company is also considering a bond sale of between $10 billion and $20 billion, with the proceeds potentially used to refinance part of the bridge loan.

SoftBank Builds Multiple Funding Channels For OpenAI

SoftBank is turning to several parts of the debt market as its OpenAI commitment grows.

In Japan, the group is planning a record ¥1 trillion retail bond offering, worth about $6.3 billion, to support its investment commitments.

Earlier this month, SoftBank also secured another $10 billion loan backed by its stake in OpenAI.

That facility includes covenants that could require the company to provide additional cash or repay the borrowing early under certain conditions.

AI Spending Is Driving A Wider Wave Of Corporate Borrowing

SoftBank’s fundraising comes as technology companies prepare to spend trillions of dollars on data centres and other infrastructure needed to support artificial intelligence.

Companies have already borrowed more than $410 billion through bond markets this year for data centres and other AI-related investments, adding to concerns over rising credit exposure to the sector.

For SoftBank, the scale of its OpenAI investment means securing enough financing has become a central part of its strategy, with loans and bond sales increasingly being used alongside its existing capital.