SoftBank Group, led by founder Masayoshi Son, is evaluating a high-debt financing model for its US$500 billion Stargate Project, an AI initiative with OpenAI.

The plan may involve high-debt financing methods typically used in large infrastructure projects, such as pipelines, according to sources close to the discussions.

Launched last month, the Stargate Project aims to develop substantial datacenter capacity across Texas and other states, with an initial US$100 billion investment.

SoftBank may require a 10% equity contribution from stakeholders like OpenAI, with the rest funded through preferred equity, mezzanine debt, and senior bank loans.

The financing plan hinges on future AI service revenues, which remain uncertain.

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