SoftBank Raises $11.1 Billion in Junk Bonds for OpenAI

SoftBank Group raised approximately $11.1 billion through one of the largest junk-bond offerings in history to finance its artificial intelligence ambitions. The issuance, consisting of $10 billion in U.S. dollar-denominated bonds and 1 billion euros in euro-denominated notes, was designed to fund the third and final installment of a $30 billion investment commitment made in February 2026. This payment, due October 1, brings SoftBank's cumulative investment in OpenAI to approximately $64.6 billion, granting the conglomerate an ownership stake of around 13%.

The dollar-denominated notes featured tenors of 3.5, 5.5, and 7.5 years with yields ranging from 8.625% to 9.75%, marking the highest rates the company has ever paid for its dollar bonds. Despite these high borrowing costs, the dollar portion of the deal saw strong demand, with orders exceeding $30 billion. The transaction cancels a previously secured $10 billion bridge loan facility.

This debt-fueled strategy has drawn scrutiny from investors due to the lack of immediate liquidity, as OpenAI CEO Sam Altman stated the company will not go public this year. The move is part of a broader effort to integrate AI, semiconductors, and data centers, building on previous acquisitions of Arm, Graphcore, and Ampere Computing. SoftBank has become the largest junk-rated borrower of 2026, having already sold nearly $15 billion in notes earlier this year.