SoftBank mulls over $25 billion bond sale for OpenAI financing

SoftBank Group Corp. is reportedly discussing a potential bond offering of US$10 billion to US$20 billion to help refinance a loan for its investment in OpenAI, according to sources familiar with the matter. The bond sale, which could be denominated in dollars and euros, might occur as early as September. The funds raised would partially be used to repay a US$40 billion bridge loan taken for the OpenAI investment in 2026.

Junk-rated SoftBank, founded by Masayoshi Son, plans to invest nearly US$65 billion in OpenAI by October, partly funded by loans. The bond issuance would join a growing number of fundraising efforts by companies looking to expand their AI presence, despite concerns about credit risks and the likelihood of returns on such investments.

Several firms are turning to junk bond investors for AI-related funding, even for investment-grade debt, as competition for capital intensifies. US tech companies are investing billions in AI infrastructure, with over US$410 billion borrowed so far in 2026 for data centers and related projects on the bond markets alone, according to Bloomberg News data.

SoftBank is considering a 144A format for the first time in over a decade, allowing the notes to be sold to institutional investors in the US, potentially tapping a larger capital pool. If the offering reaches its upper target, it would be the largest such deal from an Asian firm in 2026 and the company's second offshore bond sale in the year.