SoftBank Seeks $40 Billion Loan for OpenAI Investment

SoftBank Group is seeking a bridge loan of up to $40 billion to finance an expanding investment in OpenAI. This borrowing would mark the company's largest loan ever denominated entirely in US dollars. The facility is expected to have a 12-month tenor and involves four lenders, including JPMorgan Chase.

The financing supports a new $30 billion commitment within a larger $110 billion funding round for OpenAI, bringing SoftBank's total investment in the ChatGPT developer to approximately $60 billion. To fund these AI ambitions, SoftBank sold its entire stake in Nvidia for $5.83 billion and a portion of its T-Mobile stake for $9.17 billion.

Founder Masayoshi Son is driving the strategy to position the conglomerate at the center of the global AI buildout. However, S&P recently lowered SoftBank's credit outlook, citing concerns that the significant exposure to OpenAI could pressure the company's liquidity and asset quality.