SoftBank considers issuing $20 billion in bonds to fund its investment in OpenAI

Bloomberg – SoftBank Group is holding talks with investment banks regarding a potential issuance of bonds valued between $10 billion and $20 billion, aimed at refinancing a loan used to fund its investment in the US technology giant OpenAI.

The bonds could be issued in dollars and euros, with a potential launch as early as September. SoftBank, founded and led by billionaire Masayoshi Son and rated as high-yield debt, is set to invest approximately $65 billion in OpenAI by October, with part of this investment to be financed through loans.

The anticipated bond issuance comes amid a broad wave of fundraising efforts by companies seeking to strengthen their presence in artificial intelligence, despite growing concerns over credit risks and doubts about the profitability of these investments.

As competition for capital intensifies, some companies are turning to high-yield bond investors to finance AI-related projects, even when the debt itself is rated as investment-grade.