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SoftBank taps Mizuho, SMBC, JPMorgan for $15b AI loan
SoftBank has secured a US$15 billion bridge loan to fund its AI investments, with 21 banks participating in the deal signed on April 10.
Mizuho, SMBC, and JPMorgan led the financing, contributing over US$3.5 billion collectively, with other global banks covering the rest.
The funds will support SoftBank’s AI efforts, including a US$6.5 billion Ampere Computing deal and a potential $30 billion investment in OpenAI.
SoftBank is also seeking investors for its US$100 billion Stargate AI infrastructure project in the US, though talks are delayed.
This financing follows previous major loans by SoftBank, while the company and banks have declined to comment on the latest deal.
🔗 Source: Bloomberg
🧠 Food for thought
1️⃣ Banking sector’s remarkable confidence in SoftBank despite its troubled investment history
The $15 billion bridge loan was oversubscribed by nearly double ($27 billion in interest versus the $15 billion sought), indicating extraordinary banking sector confidence in SoftBank’s AI investment plans1.
This enthusiastic funding comes despite SoftBank’s notorious track record with mega-investments, including the WeWork disaster where valuations plummeted from $47 billion to $8 billion, requiring a costly $9.5 billion bailout2.
The banking sector’s confidence appears especially striking considering other high-profile SoftBank losses, such as Masayoshi Son’s personal $130 million Bitcoin loss and the controversial $1 billion Wirecard investment34.
This pattern suggests either remarkable resilience in SoftBank’s banking relationships or optimism about AI as an investment category that overshadows past investment failures.
2️⃣ SoftBank’s consistent “blitzscaling” investment approach persists across technology waves
SoftBank’s current AI investment strategy mirrors its Vision Fund approach, which launched in 2017 with nearly $100 billion and focused on massive investments (minimum $100 million) in established firms to dominate market share5.
The company now aims to deploy similar concentrated capital in AI, with $6.5 billion for chip designer Ampere Computing and up to $30 billion in OpenAI.
This persistence with the same high-stakes investment philosophy comes despite the spectacular failure of WeWork, which required hundreds of millions of dollars in payout to former CEO Adam Neumann and saw SoftBank’s own reputation damaged when the company’s valuation collapsed by over 80%6.
