SoftBank gets upsized $11.9 billion loan in OpenAI funding push
The two-year facility drew commitments from about 20 banks as SoftBank weighs a $10 billion to $20 billion bond sale, people familiar said.
- SoftBank Group secured an $11.87 billion loan to support its OpenAI investment, exceeding its initial $10 billion target. The Japanese conglomerate finalized the two-year facility last week with commitments from around 20 banks.
- SoftBank, led by billionaire Masayoshi Son, plans to invest nearly $65 billion in OpenAI by October. This commitment drives the firm's recent wave of debt financing activities supporting its artificial intelligence strategy.
- The company plans to pay down $25.9 billion in debt on September 15, following a $40 billion loan obtained earlier this year. SoftBank has raised about $37 billion this year through various debt instruments.
- SoftBank shares tumbled as much as 13% on Monday, the largest decline since July 17, amid mounting debt and concerns regarding credit risks in the artificial intelligence sector.
- OpenAI Chief Executive Officer Sam Altman stated the company will not proceed with a public offering this year due to safety concerns. SoftBank is meeting investors in New York this week to discuss a potential $20 billion bond sale.
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SoftBank shares plunge 13%: Why AI safety fears are now hurting the tech giant
SoftBank shares fell more than 13% after AI leaders urged greater caution on frontier models and OpenAI ruled out a 2026 IPO. The reaction sharpened investor concern that a slower pace of AI development could delay returns on Masayoshi Son's debt-backed bets.
SoftBank Gets Upsized $11.9 Billion Loan in OpenAI Funding Push
SoftBank Group Corp. secured an $11.87 billion loan to support its investment in US artificial intelligence firm OpenAI, people familiar with the matter said, up from its earlier target of $10 billion.
[Cable News] SoftBank has reportedly secured a $11.8 billion loan to invest in OpenAI. Bloomberg, citing sources, reported that SoftBank signed a two-year financing agreement last week.
According to ChainCatcher, market sources say SoftBank Group has secured a $11.87 billion loan to support its investment in OpenAI, an increase from its previous target of $10 billion.
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Cryptocurrency News | Cryptocurrency Prices | Market CapSoftBank shares tumble 13% as AI leaders call for safety slowdown
SoftBank's reliance on AI IPOs highlights the risks of concentrated tech investments, as safety concerns delay returns and impact market sentiment.
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