Bank of America Grants OpenAI US$520 Million Credit Line

Bank of America extended a US$520 million credit line to OpenAI, signaling a shift in the financial institution's strategy toward high-spending, non-profitable artificial intelligence startups. The loan follows a period of risk aversion from CEO Brian Moynihan, who previously emphasized a mantra of responsible growth and declined similar requests from the AI firm.

The decision to provide the credit facility was influenced by OpenAI's confidential filing for an initial public offering last month. Bank of America aims to position itself for a lucrative advisory role during the listing process. This funding increases the total available capital for OpenAI to more than $5 billion.

OpenAI leader Sam Altman has not finalized the timing for the IPO and may delay the process until next year. The company is currently targeting a valuation exceeding $1 trillion. Additionally, Bank of America is pursuing similar advisory opportunities with OpenAI's rival, Anthropic PBC.