SoftBank expands loan to $11.9 billion to fund OpenAI investment

SoftBank Group Corp. obtained an $11.87 billion loan for a two-year term, raising the amount from the earlier $10 billion goal. Around 20 banks participated in the facility, which was finalized last week. This borrowing follows earlier financing moves such as a $10 billion margin loan secured against SoftBank’s OpenAI stake and a contemplated $20 billion junk-bond sale.

The company also intends to settle the remaining balance of a $40 billion loan taken earlier this year, with $25.9 billion due on September 15 and the rest maturing in March next year. SoftBank is meeting investors in New York to gauge interest in the bond offering, which could raise between $10 billion and $20 billion. Founder Masayoshi Son aims to invest close to $65 billion in OpenAI by October, having already raised about $37 billion this year. OpenAI chief Sam Altman indicated that a public listing will be postponed as the firm works on safety issues.