SoftBank Group shares rose on Thursday following a Reuters report that the Japanese tech investor has resumed discussions for a $10 billion loan secured by its stake in OpenAI, reviving a financing plan aimed at supporting its aggressive artificial intelligence investment strategy.
SoftBank Group Corp. (TYO:9984) shares climbed 2.3% to ¥6,137, outperforming the broader Japanese market, where the Nikkei 225 gained roughly 0.5%.
According to Reuters, SoftBank has returned to negotiations with a consortium of lenders after earlier talks stalled, as banks were reluctant to accept shares of the private company behind ChatGPT as the sole collateral for the loan.
To address these concerns, Reuters reports that SoftBank is now offering a corporate guarantee, which would allow lenders to demand repayment from the company if the pledged stake in OpenAI proves insufficient to cover the loan. Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group are expected to participate in the credit syndicate.
This proposed margin loan is part of SoftBank founder Masayoshi Son’s broader strategy to expand the conglomerate’s presence in artificial intelligence. According to Reuters, the company has invested over $60 billion in OpenAI and related AI infrastructure projects, including the Stargate data center initiative, increasingly relying on debt and collateral-backed financing to fund these investments.
Reuters noted that lenders have grown more cautious about loans secured by stakes in private companies, as such assets are harder to value and sell compared to shares of publicly traded firms. SoftBank had previously lowered its financing target after encountering resistance from potential creditors.
Reuters also added that a potential initial public offering of OpenAI, which confidentially filed for a U.S. IPO last month, could simplify the valuation of the investment and potentially enhance its value as collateral.
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