The bridge loan would have a tenor of about 12 months, according to the people, who asked not to be identified discussing private matters. Talks with banks are in early stages and details may change over the coming weeks, the people added.
A representative for SoftBank declined to comment.
The tech investor is seeking financing as it explores ways to roll out a US$500 billion AI infrastructure project in the US, while also pursuing ambitious projects in robotics and semiconductors. The Japanese company is teaming up with OpenAI, Oracle Corp and Abu Dhabi’s MGX on the Stargate AI venture, a data centre buildout it has promised US President Donald Trump.
The bridge loan may help SoftBank lead a US$40 billion funding round in OpenAI, the people said. The move values the ChatGPT creator at US$300 billion, in what’s slated to be the largest financing round of all time. The Stargate initiative is aimed to support widespread use of OpenAI services.
Big bet
All these financing needs could result in financial strains for SoftBank, two rating companies warned on Tuesday.
Japan Credit Rating Agency changed SoftBank’s rating outlook to “negative” from “stable” due to the uncertainties associated with AI. Similarly, S&P Global Ratings said the company’s “massive” investment in OpenAI will worsen its financial position for the next six months to one year, adding that its approach to financial management is “aggressive”.
SoftBank’s founder and chief executive officer Masayoshi Son has frequently tapped creditors for mega-loans to finance big bets to reinvent the company, and cement his legacy. The group’s affiliates include Japan’s third largest wireless carrier, SoftBank Corp, and the operator of the popular Line messaging app, LY Corp. It also owns a controlling stake in UK-based chip designer Arm Holdings Plc, as it aims to become a global AI powerhouse.
SoftBank’s previous dollar facility record was a US$10 billion margin loan obtained in 2021, backed by its shares in Alibaba Group Holding Ltd. At least 14 banks had joined the borrowing, Bloomberg News reported then. In 2017, the company obtained ¥2.65 trillion (US$17.7 billion) in senior debt to refinance loans that backed the purchase of US carrier Sprint in 2013 and Arm in 2016.
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