SoftBank Group Corp. is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in US tech giant OpenAI, according to people familiar with the matter.The offering could be denominated in dollars and euros and could come as early as September, said the people, who asked not to be identified discussing private matters.
The talks are still ongoing and details could change, the people added.Proceeds from the sale would partly be used to repay a $40 billion bridge loan secured earlier this year for its OpenAI investment, the people said.
Junk-rated SoftBank, founded and led by billionaire Masayoshi Son, is slated to invest close to $65 billion in OpenAI by October, funded in part by loans.The bond sale would add to a slew of fundraising by companies looking to deepen their reach into artificial intelligence, despite concerns about growing credit risks and whether these investments will actually pay off.
Some firms are turning to junk bond investors for AI-related funding, even for debt that is investment-grade, as competition for capital heats up.
US tech firms, meanwhile, are planning to pour trillions of dollars into data centers and other AI infrastructure in the coming years.
