SoftBank Raises More Than $11 Billion in Bonds for $10 Billion OpenAI Bet

SoftBank Group has begun selling more than $11 billion in bonds to finance another major investment in OpenAI, including $10 billion in U.S. dollar-denominated debt and €1 billion in euro bonds. Most of the proceeds are expected to support a planned $10 billion OpenAI investment scheduled to close on October 1, while the remainder will go toward general corporate purposes.

The bond sale replaces a $10 billion bridge loan SoftBank previously arranged for the investment, shifting the financing from short-term borrowing into longer-dated debt. The dollar bonds are being offered with maturities of 3.5 years, 5.5 years and 7.5 years, while the euro bonds will mature in four and six years.

SoftBank has also arranged a separate $40 billion bridge facility announced in March to support broader investment plans that include OpenAI. The group has been steadily increasing its financial exposure to the AI company as part of a wider strategy centered on artificial intelligence.

In February, SoftBank said it planned to invest another $30 billion in OpenAI through SoftBank Vision Fund 2. That commitment was divided into three $10 billion installments, with the final tranche set for October.

Once that investment is completed, SoftBank’s total commitment to OpenAI is expected to reach $64.6 billion. The company has said that level of investment would correspond to an expected ownership stake of about 13%.

The latest financing shows how SoftBank is increasingly relying on debt markets to fund its AI strategy. Rather than using only equity or cash reserves, the company is tapping long-term bond investors to support one of its largest technology bets.

SoftBank has also explored other financing options tied to its OpenAI exposure, including discussions about loans backed by its stake in the company. The current bond sale gives the group another source of capital while reducing its dependence on bridge financing.

The bonds are expected to be priced on September 24, with settlement scheduled for September 29. Citigroup and JPMorgan are serving as lead bookrunners.

The structure also reflects the scale of capital now flowing into AI companies and infrastructure. SoftBank’s OpenAI investment is large enough to require a mix of equity, bridge loans and long-term debt, making traditional credit markets an increasingly important part of how major AI commitments are financed.

For SoftBank, the transaction is both a funding exercise and a sign of how central OpenAI has become to its capital allocation strategy. The company is increasing its AI exposure while also extending the repayment timeline on the debt used to support that investment.

This analysis is based on reporting from Asia. Business Outlook.

Image courtesy of Tomohiro Ohsumi.

This article was generated with AI assistance and reviewed for accuracy and quality.