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SoftBank secures $40 billion loan to fund further OpenAI investment
SoftBank's $40 billion loan includes $30 billion for OpenAI, boosting its stake to 13%, with funding linked to US AI infrastructure initiatives, credit agencies warn on liquidity risks.
- SoftBank Group secured a $40 billion bridge loan on Friday to fund its follow-on investment in OpenAI and support other corporate needs, marking the largest dollar-denominated loan in its history.
- Following a definitive agreement entered on February 27, SoftBank committed to participating in OpenAI's $110 billion fundraising round at an $840 billion valuation, with the new loan financing a $30 billion follow-on investment through Vision Fund.
- JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and MUFG Bank arranged the unsecured facility, which matures on March 25, 2027, with borrowings expected to be repaid in stages using existing assets.
- Upon completion, SoftBank's cumulative investment in OpenAI will reach approximately $64.6 billion, representing roughly 13% ownership; however, credit rating agencies lowered their outlook on the group, citing OpenAI exposure concerns.
- Masayoshi Son and President-elect Donald Trump previously announced a plan for SoftBank to invest in AI infrastructure; the company remains a founding partner of the Stargate Project despite scrutiny regarding the pace of these investments.
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17 Articles
SoftBank secures $40B loan to double down on OpenAI as AI race heats up - Tech Startups
SoftBank Group just made one of its boldest moves in years, locking in a $40 billion bridge loan as it leans harder into artificial intelligence—and into OpenAI at the center of it all. The financing, announced Friday, ranks among the […] The post SoftBank secures $40B loan to double down on OpenAI as AI race heats up first appeared on Tech Startups.
SoftBank secures $40 billion loan to fund further OpenAI investment
March 27 (Reuters) – SoftBank Group said on Friday it has secured a $40 billion loan through a bridge facility to fund further investments in ChatGPT maker OpenAI and for general corporate purposes. The facility, which matures in March 2027, was arranged with lenders including JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corp and MUFG Bank. The Japanese investor has previously agreed to invest $30 billion in …
A month ago, SoftBank Group concluded a final agreement with OpenAI to make tracking investments of $30 billion through its SoftBank Vision Fund 2 fund in the framework of a record-breaking 'startup' funding round in which companies such as Amazon and Nvidia also took part.
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