JPMorgan Chase & Co, Goldman Sachs Group Inc, Mizuho Bank Ltd, Sumitomo Mitsui Banking Corp and Mitsubishi UFJ Financial Group Inc have underwritten the bridge facility that is set to mature on March 25, 2027, SoftBank announced last month.
The mega loan highlights how much debt founder Masayoshi Son is willing for the company to take on as it seeks to secure the firm’s pivotal role in the global AI race. The group’s latest bet on OpenAI comes on top of more than US$30 billion the company has already injected into the startup, which is one of its biggest holdings alongside a roughly 90% stake in chip designer Arm Holdings plc.
SoftBank’s heavy investment push into AI, coupled with a rising debt load to fund those bets, has unsettled market watchers. In March, S&P Global Ratings lowered the group’s credit outlook to negative from stable, citing the danger that its investments in OpenAI may hurt the Japanese company’s liquidity and credit quality of its assets.
A media representative for SoftBank declined to comment.
See also: Leveraged ETF goes haywire in Korea with wrong-way 40% moves
Separately, SoftBank is also tapping the bond market for an additional source of funding. It is in talks with investors ahead of a possible six-part dollar and euro bond sale, said another person familiar with the matter.
Uploaded by Arion Yeow
