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SoftBank's OpenAI Loan Slashed Amid Creditor Doubts
8 May
Summary
- SoftBank has reduced its planned $10 billion margin loan backed by OpenAI shares.
- Creditor concerns over valuing the unlisted ChatGPT maker are cited.
- The loan target is now as low as $6 billion, with details still evolving.
SoftBank Group has significantly scaled back its planned $10 billion margin loan, which was to be secured by its stake in OpenAI. This revision comes as some potential creditors have shown hesitation, citing difficulties in valuing the unlisted artificial intelligence company, creator of ChatGPT.
Discussions indicate the target loan amount has been reduced to as low as $6 billion. While details are still being finalized and could change, the loan was initially planned as a two-year facility with an option to extend for an additional year.
SoftBank has been an investor in OpenAI since September 2024. The two entities are also collaborating on the Stargate U.S. artificial intelligence infrastructure project. Earlier this year, SoftBank secured a substantial $40 billion bridge loan to support its investments, including those in OpenAI.
