SoftBank Seeks $10 Billion Loan to Fund OpenAI Investment

SoftBank Group Corp. is seeking a $10 billion loan to refinance debt tied to its massive investment in OpenAI. Arranged by Mizuho Bank Ltd., the two-year facility would carry an interest margin of approximately 275 basis points over the Secured Overnight Financing Rate.

This loan is a component of a larger financing strategy to support a total investment of nearly $65 billion in OpenAI by October. SoftBank intends to use the loan proceeds to partially repay a $40 billion bridge loan it secured earlier this year.

To meet its remaining commitments, the company is considering a $10 billion to $20 billion bond offering and a record ¥1 trillion retail bond sale in Japan. These financing efforts come as the firm manages significant debt amid a broader industry trend of high capital expenditure on AI infrastructure.