SoftBank secures $11.87 bn two‑year loan for OpenAI investment, topping $10 bn target
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| Source: Techmeme | Original article
SoftBank secured an $11.87 billion, two‑year loan facility from about 20 banks to fund its OpenAI investment, surpassing its $10 billion target.
SoftBank Group Corp. has closed a two‑year loan facility worth $11.87 billion, secured from roughly 20 banks, according to sources familiar with the deal. The financing, finalized last week, exceeds the Japanese conglomerate’s original $10 billion target and is earmarked to back its stake in U.S. AI leader OpenAI.
The loan marks the latest tranche of capital SoftBank is marshaling for its OpenAI investment. Earlier this year the group arranged a $25.9 billion bridge loan, which it announced it will repay in full, and previously disclosed a larger $40 billion bridge facility that must be settled by March 2027. By replacing short‑term bridge debt with a longer‑term, bank‑backed facility, SoftBank reduces financing risk while keeping liquidity available for further equity purchases or strategic support of OpenAI’s rapid product rollout.
The move underscores SoftBank’s confidence in the commercial upside of frontier AI models and signals continued Japanese corporate interest in the sector. It also highlights the growing appetite among global banks to fund AI‑related investments, even as regulators debate standards for the technology.
Observers will watch how SoftBank allocates the new funds—whether it will increase its ownership percentage, fund joint development projects, or use the capital to hedge against OpenAI’s upcoming financing rounds. The terms of the loan, including interest rates and covenants, could set a benchmark for future corporate financing of AI ventures. Additionally, the repayment schedule for the earlier bridge loans will be a key metric of SoftBank’s cash‑flow management as OpenAI’s valuation and potential public‑market plans evolve.
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