SoftBank to raise more than $11 billion through risky bond sales to fund its OpenAI investment

SoftBank intends to borrow more than $11 billion from investors through high-risk bonds to cover another payment for its stake in OpenAI, according to the Financial Times, which reviewed investor documents. The move underscores how far the Japanese conglomerate is willing to go—and how much financial risk it is prepared to take on—to secure its position in the AI race.

Junk Bonds Set SoftBank Apart from Tech Peers

The debt SoftBank plans to issue is classified as junk bonds, meaning they offer high interest rates to compensate investors for a greater chance of losing their money. The FT notes that most other major technology companies have recently opted for safer bond issuances instead.

According to the report, SoftBank is preparing bonds totaling $10 billion plus 1 billion euros. The terms are expected to be finalized on Thursday, while the payment owed to OpenAI falls due in October.

Restructuring a Massive Short-Term Loan

This offering builds on an earlier financing arrangement. The Japanese company had already secured short-term loans of up to $40 billion dedicated to its OpenAI commitments. By replacing that short-term borrowing with longer-term debt, SoftBank aims to ease near-term repayment pressure—though the swap could temporarily push the company beyond its own internal debt ceiling.

High Stakes Tied to OpenAI's Future

The scale of SoftBank's bet becomes clearer in light of OpenAI's own financial projections. The FT reports that OpenAI expects to burn through nearly $280 billion in cash by the end of 2030. Meanwhile, SoftBank's data center business is banking on its contracts with OpenAI as a key source of future revenue, deepening the financial entanglement between the two companies.

What to Watch Next

With bond terms set to be announced Thursday and the OpenAI payment due in October, investor appetite for the high-yield offering will be an early test of confidence in SoftBank's AI strategy. How the company manages its debt levels in the coming quarters—and whether its data center ambitions translate into revenue—will shape perceptions of one of the largest corporate bets on artificial intelligence.

Meta description: SoftBank plans to borrow over $11 billion through junk bonds to fund its OpenAI stake payment, swapping short-term loans for long-term debt.

Tags: SoftBank, OpenAI, junk bonds, corporate debt, AI investment

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