SoftBank seeks ten billion dollar loan backed by OpenAI stake

SoftBank is in talks with several major banks to borrow $10 billion. The banks include Goldman Sachs, JPMorgan Chase, and Mizuho. SoftBank wants to use its shares in OpenAI as security for the loan. This type of borrowing is called a margin loan.

The Japanese technology company has already put more than $60 billion into OpenAI and related projects. It also has around $104 billion in debt overall, and a $40 billion loan that must be repaid by March 2027.

The banks are being careful. They say it is hard to put a value on private companies like OpenAI. It is also harder to sell shares in a private company than in a publicly listed one. SoftBank tried to arrange similar financing before, but lenders were not willing.