Bank of America has extended a $520 million credit line to OpenAI, reversing an earlier decision to reject the AI company’s loan request. The move positions BofA as a potential key banking partner ahead of what could become one of the largest tech IPOs in history.
OpenAI confidentially filed its S-1 paperwork with the SEC back in May 2026, and the company’s valuation has climbed to staggering heights. Following a $122 billion funding round in March 2026 backed by Amazon, Nvidia, and SoftBank, OpenAI’s valuation reached as high as $852 billion.
Why BofA changed its mind
Pre-IPO credit facilities are essentially a bank’s way of buying a front-row seat. The loan itself generates modest revenue, but the real prize is the underwriting fees, trading commissions, and wealth management business that flow from being embedded in a company’s financial infrastructure before it goes public.
OpenAI’s IPO ambitions reportedly target valuations approaching $1 trillion, though some speculation suggests the timeline could slip into 2027.
