Masayoshi Son's SoftBank Negotiates $10B Energy Project Funding With Banks: Report

Masayoshi Son‘s SoftBank Group SFTBY is reportedly in talks with banks to secure loans for energy-related projects. The projects are estimated to be worth up to $10 billion.

What Happened: A person with direct knowledge of the matter said that the group could raise the required capital through bank loans and by involving other investors, The Verge reported via The Information, on Thursday.

SoftBank has yet to respond to the queries sent by Benzinga.

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Why It Matters: The rapid advancement in technology, especially in generative artificial intelligence, has led to a surge in energy demand and data center investments. Last month, SoftBank’s founder, Son, announced that the group would be expanding its power generation business, primarily in the U.S., to cater to global generative AI projects.

This move aligns with SoftBank’s recent investments in AI, including a reported significant investment in the Jeff Bezos-backed AI startup Perplexity AI.

Furthermore, SoftBank has considered setting up a special-purpose company to buy chips from Nvidia using borrowed funds. This company would then lease the chips back to SoftBank, according to the same source. This strategy comes on the heels of SoftBank’s announcement to raise $1.86 billion through bond issuance for AI investment and debt repayment.

Price Action: On Wednesday, SoftBank stock closed at $33.35 in the OTC, according to Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari