SoftBank Scales Back Planned $10 Billion OpenAI Margin Loan After Lender Pushback: Report - SoftBank Grou
Several creditors balked at using OpenAI shares as collateral, and the lower target suggests banks want a wider haircut on the stake.
- On Friday, Bloomberg reported that SoftBank Group has trimmed its margin loan target against its OpenAI stake to $6bn, down from an initial $10bn goal, after lenders balked at the valuation.
- Lenders pushed back on OpenAI's $852bn post-money valuation struck in March's primary round, with some expressing caution about assigning reliable value to the unlisted ChatGPT maker.
- SoftBank Group's cumulative committed exposure to OpenAI reaches roughly $64.6bn, giving the group around 13% of the company, as founder Masayoshi Son aggressively expands AI investments.
- Last month, S&P lowered the group's credit outlook, citing concerns that OpenAI exposure could impair liquidity and credit quality of its broader asset base.
- The trajectory signals how the financing world now values OpenAI relative to primary marks; a $6bn close will reflect the true cost of borrowing against private AI equity.
15 Articles
15 Articles
SoftBank cuts OpenAI-backed margin loan target from $10B to $6B
SoftBank group has downsized plans for a $10 billion margin loan backed by its OpenAI stake, according to a Bloomberg news report. SoftBank and bankers have mentioned in discussions plans to revise the target to an amount as low as $6 billion. The report said that the group’s initial pitch had investors concerned about the difficulty of reaching a valuation for an unlisted company like OpenAI. A margin loan is when an investor borrows from…
SoftBank cuts OpenAI-backed loan target to $6B as lenders balk at valuation
SoftBank has cut a planned OpenAI‑backed margin loan from around $10 billion to roughly $6 billion after banks and private credit funds pushed back on the deal’s structure and the difficulty of valuing OpenAI, an unlisted AI unicorn. SoftBank Group…
SoftBank cuts planned $10B OpenAI-backed loan after lenders raise valuation concerns - Tech Startups
SoftBank’s massive bet on OpenAI is running into a problem that has begun to shadow the AI boom: how do lenders assign a reliable valuation to a private company worth hundreds of billions of dollars on paper? The Japanese investment […] The post SoftBank cuts planned $10B OpenAI-backed loan after lenders raise valuation concerns first appeared on Tech Startups.
SoftBank Scales Back Planned $10 Billion OpenAI Margin Loan After Lender Pushback: Report - SoftBank Grou
SoftBank Group Corp. (OTC:SFTBY) is reportedly scaling back plans for a margin loan backed by its stake in OpenAI after some lenders raised concerns over the valuation of the privately held artificial intelligence startup. According to a Bloomberg report on Friday, the Japanese investment giant and its bankers have discussed reducing the target size of the loan to as low as $6 billion, down from an initial goal of $10 billion. Discussions with p…
SoftBank cuts OpenAI-backed margin loan target by 40% to $6bn
Lenders pushed back on valuing OpenAI shares as collateral. The downsize lands a fortnight after the $10bn ask first surfaced and is the clearest signal yet that even an $852bn primary round has not closed the gap between sticker and what banks will lend against. SoftBank Group has trimmed the size of a margin loan […] This story continues at The Next Web
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