SoftBank could raise up to $20 billion in bonds to invest in OpenAI: Report
SoftBank is discussing a $10 billion–$20 billion bond sale with investment banks, and the sale could happen as early as September.
- Aug 26, 2026,
- Updated Aug 26, 2026 5:12 PM IST
SoftBank has reportedly committed to investing nearly $65 billion in OpenAI by October, 2026. However, to invest a massive amount, it is currently trying to raise a huge amount of money through bonds. According to a Bloomberg report, SoftBank is discussing a $10 billion–$20 billion bond sale with investment banks, and the sale could happen as early as September.
The investment company has already funded the AI startup through borrowed money. The report highlighted that it took out a $40 billion bridge loan to help finance its OpenAI investment earlier this year. Now it plans to raise money through bonds and use some of that money to repay the $40 billion loan.
Must read: OpenAI reveals how Jalapeño Chip performs, wider deployment coming in 2027
Although the deal is not yet finalised, which means the amount, timing, and structure could still change.
Why SoftBank investment matter?
The massive investment amount showcases SoftBank’s trust in growing AI demand, and particularly in OpenAI. The investment company may have a funding gap of more than $20 billion, so a $10–$20 billion bond sale could substantially reduce that gap.
On the other hand, investors are showing concerns as SoftBank is already junk-rated. After news of the potential bond sale, its 8.5% dollar bond fell about 2.3 cents, to roughly 98 cents on the dollar, its biggest daily drop since April. Its credit-default swaps (CDS) widened by 10.7 basis points.
Bloomberg also quoted a SoftBank spokesperson saying that, ‘We are considering various options to refinance the bridge loan, but nothing has been decided, including the amount for each.”
Must read: OpenAI loses another executive: Chris Malone, head of data centres exits amid executive shake-up
SoftBank is reportedly considering using a 144A bond offering. This will allow the bonds to be sold to institutional investors in the US, giving SoftBank access to a much larger pool of potential investors.
How bond sale matter beyond SoftBank?
The bond sale showcases a major industry trend where AI companies are borrowing heavily to fund the AI boom. Big technology companies are planning to spend trillions of dollars on AI data centres, power infrastructure, networking, GPUs and other crucial components.
Reportedly, companies have already borrowed more than $410 billion this year through bond markets alone for data centres and other AI investments. This also showcases how growing AI demand is being financed with debt.
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SoftBank has reportedly committed to investing nearly $65 billion in OpenAI by October, 2026. However, to invest a massive amount, it is currently trying to raise a huge amount of money through bonds. According to a Bloomberg report, SoftBank is discussing a $10 billion–$20 billion bond sale with investment banks, and the sale could happen as early as September.
The investment company has already funded the AI startup through borrowed money. The report highlighted that it took out a $40 billion bridge loan to help finance its OpenAI investment earlier this year. Now it plans to raise money through bonds and use some of that money to repay the $40 billion loan.
Must read: OpenAI reveals how Jalapeño Chip performs, wider deployment coming in 2027
Although the deal is not yet finalised, which means the amount, timing, and structure could still change.
Why SoftBank investment matter?
The massive investment amount showcases SoftBank’s trust in growing AI demand, and particularly in OpenAI. The investment company may have a funding gap of more than $20 billion, so a $10–$20 billion bond sale could substantially reduce that gap.
On the other hand, investors are showing concerns as SoftBank is already junk-rated. After news of the potential bond sale, its 8.5% dollar bond fell about 2.3 cents, to roughly 98 cents on the dollar, its biggest daily drop since April. Its credit-default swaps (CDS) widened by 10.7 basis points.
Bloomberg also quoted a SoftBank spokesperson saying that, ‘We are considering various options to refinance the bridge loan, but nothing has been decided, including the amount for each.”
Must read: OpenAI loses another executive: Chris Malone, head of data centres exits amid executive shake-up
SoftBank is reportedly considering using a 144A bond offering. This will allow the bonds to be sold to institutional investors in the US, giving SoftBank access to a much larger pool of potential investors.
How bond sale matter beyond SoftBank?
The bond sale showcases a major industry trend where AI companies are borrowing heavily to fund the AI boom. Big technology companies are planning to spend trillions of dollars on AI data centres, power infrastructure, networking, GPUs and other crucial components.
Reportedly, companies have already borrowed more than $410 billion this year through bond markets alone for data centres and other AI investments. This also showcases how growing AI demand is being financed with debt.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine