SoftBank Plans Up to $20 Billion Bond Sale as Early as September to Fund OpenAI Bet

SoftBank is in talks with investment banks to issue $10 billion to $20 billion in dollar- and euro-denominated bonds, with a planned launch in September, primarily to repay a $40 billion bridge loan obtained for its investment in OpenAI. The move is part of SoftBank's financing arrangements to fulfill its nearly $65 billion investment commitment to OpenAI, reflecting rising financing demand in the AI sector, though its junk credit rating has raised market concerns about credit risk and return prospects.

SoftBank Group is seeking to refinance its massive bet on OpenAI through a large-scale bond issuance, a move that underscores the growing financing needs of tech giants in artificial intelligence, but also heightens credit risk concerns.

According to a Bloomberg report on Aug. 26, people familiar with the matter said SoftBank is in discussions with multiple investment banks about issuing $10 billion to $20 billion in bonds, with proceeds partly used to repay a $40 billion bridge loan obtained earlier this year for its OpenAI investment. The issuance could take place as early as September, and the bonds may be denominated in both dollars and euros. The people said negotiations are ongoing and details may change.

The potential bond sale is part of a series of financing operations by SoftBank to support its nearly $65 billion committed investment in OpenAI, and adds to the wave of corporate financing for AI initiatives. At the same time, the market still has clear doubts about the rising credit risk of such investments and their ultimate return prospects.

Refinancing Pressure: $40 Billion Bridge Loan Due

According to people familiar with the matter cited by Bloomberg, the junk-rated company led by founder and CEO Masayoshi Son plans to invest nearly $65 billion in OpenAI by October this year, with part of the funding relying on loans.

To that end, SoftBank earlier this year arranged a $40 billion bridge loan as a temporary financing tool for the investment. The proposed bond issuance is intended to refinance that bridge loan, replacing it with longer-term, more stable debt instruments to ease short-term repayment pressure.

People familiar with the matter said the bond issuance size is in the range of $10 billion to $20 billion, to be denominated in both dollars and euros, and could be completed as early as September this year.

SoftBank is currently in discussions with multiple investment banks on the plan. The people stressed that negotiations are still ongoing, and the final size, currency structure, and timing may be adjusted.

Credit Risk Debate Behind AI Financing Boom

SoftBank's bond plan is a microcosm of the recent large-scale financing wave in the corporate world around the theme of artificial intelligence. Many companies are racing to raise funds through debt markets to deepen their AI footprint.

However, according to Bloomberg, market concerns are also mounting—rising credit risk and whether these massive investments will actually deliver returns remain core issues for investors. SoftBank itself holds a junk credit rating, and if it successfully completes a large-scale bond issuance, it will further test its balance sheet and serve as an important reference for gauging investors' risk appetite for AI themes.