SoftBank Secures $11.87 Billion Loan to Ramp Up OpenAI Investment

Odaily News: SoftBank Group has secured a $11.87 billion loan to support its investment in U.S. artificial intelligence company OpenAI, exceeding its previous target of $10 billion. People familiar with the matter said the Japanese conglomerate finalized the two-year financing last week, attracting commitments from about 20 banks. The latest borrowing will further add to SoftBank's recent debt financing activities tied to its OpenAI bets, including a $10 billion margin loan backed by its OpenAI stake and a potential bond issuance of up to $20 billion, despite concerns over rising credit risks in the AI industry.

SoftBank said last week that it would repay the remaining $40 billion loan obtained earlier this year to fund its OpenAI investment. According to a statement, the company plans to repay the $25.9 billion owed on September 15. The unsecured borrowing was originally due in March next year. Meanwhile, SoftBank will meet with investors in New York this week to gauge interest in a potential U.S. dollar junk bond issuance. People familiar with the matter said last month that the company is considering raising $10 billion to $20 billion through a bond issuance. (Jinshi)