SoftBank seeks more banks for $40b OpenAI loan

SoftBank has entered a “soft launch” phase with banks on a US$40 billion loan to fund its OpenAI investment.

It has invited more lenders to join as sub-underwriters, in a fresh test of appetite for the Japanese group’s debt-fueled push into AI.

The bridge facility, announced last month and due on March 25, 2027, is underwritten by JP Morgan, Goldman Sachs, Mizuho Bank, SMBC, and Mitsubishi UFJ Financial Group, with new participants asked to commit about US$5 billion each.

The financing adds to more than US$30 billion that SoftBank has already injected into OpenAI, the report said.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

SoftBank’s OpenAI-linked financing comes amid OpenAI’s ongoing restructuring plans

SoftBank’s recent commitments include a reported US$500 million investment in OpenAI’s October 2024 funding round 1.
The October 2024 round used convertible notes, or debt that can convert into equity later. The conversion mechanics depended on OpenAI completing a shift from its current not-for-profit structure toward a for-profit structure, often described as a public benefit corporation, a company meant to pursue both profit and a stated public mission 1.
This activity fits CEO Masayoshi Son’s stated move from “defense” to “offense” tied to “artificial superintelligence,” which helps explain SoftBank’s appetite for large AI funding commitments 1.

SoftBank’s US$40 billion bridge loan underlines growing use of debt to fund AI ambitions

The US$40 billion bridge facility suggests some AI infrastructure and expansion now rely on large debt facilities to cover heavy capital needs.
Lenders may lean on growth claims from leading AI companies. OpenAI, for instance, forecast revenue of US$11.6 billion in 2025 1.
Debt raised at this scale can raise barriers to entry, since only the largest and best-capitalized AI companies may secure similar terms.
Banks also take on more exposure to frontier AI, meaning the most advanced AI systems at the cutting edge of current development, which blurs the line between traditional corporate lending and higher-risk growth financing.