SoftBank Group has secured an $11.87 billion two-year loan from a syndicate of approximately 20 banks. The financing facility exceeded the initial target of $10 billion. These funds are intended to support the company's ongoing investment in OpenAI, which is expected to reach a cumulative total of $64.6 billion by October.
This investment will grant SoftBank an approximate 13% stake in OpenAI. The deal follows a previous attempt three months ago to raise at least $6 billion against its OpenAI holdings, which had stalled due to lender hesitation regarding private company valuations. The new loan is separate from an existing $10 billion margin facility linked to the same stake.
The financial restructuring coincides with SoftBank's plan to repay the remaining $25.9 billion on a $40 billion bridge loan by September 15. The group continues to utilize various instruments, including short-term borrowing, asset-backed loans, and bond sales, to finance its AI commitments. There have also been discussions regarding the potential sale of up to $20 billion in overseas bonds.
Market reaction to the company's strategy has been volatile, with SoftBank shares falling by as much as 13% following warnings from AI industry executives about development risks. While equity investors are questioning the sustainability of returns from AI spending, lenders remain willing to provide capital, supported by collateral and guarantees.
