Artificial Intelligence
SoftBank plans $11bn bonds for OpenAI stake
SoftBank planned a bond sale worth more than $11 billion, split between dollar and euro tranches, to make another payment on its OpenAI holding, according to the Financial Times.
- According to the Financial Times, SoftBank planned to borrow more than $11 billion through bonds to meet another payment tied to its OpenAI stake.
- The planned issue was said to comprise $10 billion and €1 billion.
- The terms were expected on Thursday, and the payment to OpenAI was due in October.
- The FT said SoftBank had already arranged short-term loans of up to $40 billion for OpenAI and now wanted longer-term debt instead.
- The FT also said the move could take SoftBank above its own debt ceiling for a time, while OpenAI expected to burn through nearly $280 billion in cash by the end of 2030.
The Financial Times reported that SoftBank planned to raise more than $11 billion by selling bonds to help meet another payment linked to its OpenAI stake. Its account was based on investor documents.
The planned borrowing was split into $10 billion and €1 billion. The terms were expected on Thursday, and the payment to OpenAI was due in October.
The FT said SoftBank had already lined up short-term loans of up to $40 billion for OpenAI. It now wanted to replace those with longer-term borrowing.
The report said the shift could put SoftBank above its own debt limit for a period. It also said OpenAI expected to use nearly $280 billion in cash by the end of 2030.
Named in this story
Companies
- SoftBank
- planned the bond issue and the OpenAI payment
- OpenAI
- was to receive the payment tied to SoftBank’s stake
Organisations
- Financial Times
- reported the plan and cited investor documents
How the source tells it
The piece was mostly straight financial reporting, with a mild risk-focused tone created by high-yield debt labels and debt-ceiling language.
- risk emphasis the source used loaded debt labels and default-risk wording