SoftBank’s OpenAI loan swells as more banks join syndication

HSBC, BNP Paribas, and Intesa Sanpaolo have joined a growing list of financial institutions committing as sub-underwriters to SoftBank’s massive $40 billion bridge loan, which was signed in March to fund its investment in OpenAI. This marks one of the biggest tests yet of how much appetite lenders have for AI-linked debt, with at least eight banks now submitting commitments in the syndication process.

The loan, originally arranged by a smaller group of lead banks, is expanding as more creditors seek exposure to the high-stakes AI sector. SoftBank’s bet on OpenAI, the company behind ChatGPT, represents a significant gamble on the future of artificial intelligence, and the widening syndicate suggests that confidence in that bet is spreading across the global banking industry.

For the participating banks, the deal offers a chance to back a marquee name in tech while earning fees and interest in a lending market that has been cautious about large, unsecured exposures. However, the sheer size of the loan , one of the largest ever tied to a single technology company , also raises questions about risk concentration and the sustainability of AI valuations.

SoftBank has not commented on the expanded syndication, but the move signals that its strategy of leveraging debt to double down on AI investments is gaining traction with mainstream lenders. The final terms and pricing of the loan are expected to be set in the coming weeks as the syndication closes.