SoftBank Weighs $16.5 Billion Loan That Could Back OpenAI's $40 Billion Raise: Report

SoftBank Group Corp SFTBF SFTBY is weighing a loan of up to $16.5 billion to finance its U.S. artificial intelligence ambitions.

The bridge loan would have a term of about 12 months.

The loan may help SoftBank lead a $40 billion funding round in OpenAI, Bloomberg reported, citing unnamed sources familiar with the matter. The move values the ChatGPT parent at $300 billion.

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The Japanese tech investor remains engaged in its $500 billion AI infrastructure project in the U.S., along with other projects in robotics and semiconductors. The Japanese company is partnering with OpenAI, Oracle Corp, and Abu Dhabi’s MGX on the Stargate AI deal.

On Tuesday, Japan Credit Rating Agency and S&P Global Ratings flagged potential financial strains for SoftBank from its financing needs.

SoftBank’s founder and chief, Masayoshi Son, has frequently obtained large loans from creditors.

SoftBank is considering a $1 trillion investment in U.S. AI industrial parks using autonomous robots.

SoftBank may reportedly become OpenAI’s top backer, investing up to $25 billion, surpassing Microsoft Corp’s MSFT $14 billion stake.

OpenAI expects to more than triple its revenue this year to $12.7 billion from $3.7 billion in 2024 and sales to increase to $29.4 billion in 2026. Still, OpenAI does not expect to be cash-flow positive until 2029, when it projects revenue to top $125 billion as it grapples with AI development costs.

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