SoftBank Eyes Second $10B Loan Against OpenAI Stake

SoftBank is reportedly pursuing an additional $10 billion loan to support its massive investment in OpenAI, according to a recent Bloomberg report. This move follows closely on the heels of a similar $10 billion facility that closed just 22 days prior, raising questions about the company’s liquidity strategy and the sustainability of its high-leverage approach to artificial intelligence.

While TNW has not independently verified the specifics of this latest request, the pattern of financing reveals a complex effort to manage risk. SoftBank originally secured a $40 billion unsecured bridge facility in March to fund its OpenAI commitments. This temporary debt must be repaid or refinanced by March 2027. The group has already committed over $60 billion to OpenAI and related AI infrastructure, creating significant exposure that cannot remain on short-term debt indefinitely.

The transition from bridge financing to long-term solutions has been fraught with challenges. In April, SoftBank sought a $10 billion margin loan secured by OpenAI shares but encountered difficulties because lenders could not agree on the valuation of the private company’s stock. By May, the target was reduced to $6 billion, but it was revived at the original $10 billion level in July after SoftBank provided a corporate guarantee. This concession gave lenders recourse to the parent company if the value of the pledged shares declined. Reuters noted that this guarantee was the key factor that unlocked the deal.

Bloomberg confirmed on August 6 that the $10 billion margin loan had finally closed, four months after initial negotiations began. The structure proved significantly more favorable to lenders than the original proposal. Just three weeks later, SoftBank was reportedly considering a bond sale of up to $20 billion to refinance its OpenAI borrowing. The subsequent report of a second $10 billion loan suggests that the company is still actively managing its capital structure to meet these obligations.

This reliance on credit markets extends beyond institutional investors. Earlier this year, SoftBank raised a record $6.3 billion through bonds sold to Japanese retail investors, tapping into a market segment when institutional demand was insufficient. Despite the heavy borrowing, equity markets have remained supportive. SoftBank recently surpassed Toyota to become Japan’s most valuable listed company, driven by the broader AI rally. This surge in valuation has made the leverage tolerable for shareholders who might otherwise resist such aggressive financial engineering.

Viewed as a sequence, the borrowing strategy is logical. A $40 billion bridge facility cannot be retired by a single $10 billion loan, requiring multiple instruments to arrive in succession. The initial ambition was even larger, with SoftBank seeking a record facility of up to $40 billion for the OpenAI stake in March. The current series of smaller deals reflects what happens when lenders price in the risks associated with private collateral.

However, the cadence of these requests is notable. SoftBank is returning to credit markets at intervals measured in weeks rather than quarters, each time pricing against collateral valuations that exist only theoretically. This uncertainty stems from the fact that OpenAI filed confidentially with the SEC in June, pointing toward an eventual public listing. Until then, every lender is operating based on estimated values rather than transparent market prices.

Despite the rapid pace of new financing, the syndication has held firm. Twenty-one additional lenders joined the original $40 billion facility after its signing, indicating that appetite for SoftBank’s debt has not yet dried up. Masayoshi Son has built the group’s strategy around this central position, making SoftBank’s fortunes more dependent on OpenAI’s success than on any other asset in its portfolio. This is a deliberate choice that has been consistently reinforced by leadership.

SoftBank has not publicly commented on the latest reports, and no specific terms, lenders, or timelines have been confirmed for the new loan. The next critical milestone remains the March 2027 deadline for the original $40 billion bridge facility. How SoftBank navigates the period leading up to that date will determine whether its AI bet pays off or becomes a burden on its balance sheet.