Apollo in talks to boost SoftBank Vision Fund 2 loan to $9 bln - Bloomberg

Apollo Global Management is reportedly negotiating with SoftBank to increase its loan to the company's Vision Fund 2 from $5.4 billion to $9 billion. The financing, which is secured by the assets in SoftBank's Vision Fund 2, has not been finalized, according to people familiar with the discussions. Apollo previously provided a net-asset-value loan to Vision Fund 2 in 2021, which was subsequently increased by $900 million last year.

The potential increase comes as SoftBank steps up funding for artificial intelligence, having committed $64.6 billion to OpenAI and using its stake in the company to raise liquidity. The cost of insuring SoftBank's debt against credit risk has risen to a three-year high amid concerns about the risks surrounding the AI industry. Vision Fund 2 has made over 300 investments since its inception and has recently increased its exposure to OpenAI.

The loan increase would provide SoftBank with additional liquidity as it continues financing its OpenAI commitment, while keeping the Vision Fund 2 assets as collateral.