SoftBank adds $21 billion to AI firepower in new debt deals
The Japanese conglomerate increased its margin loan backed by shares of its chip unit Arm Holdings Plc by $5 billion to $25 billion, people familiar with the matter said on Friday. And it recently secured an additional $450 million to an existing credit line, bringing the total to $6.5 billion, according to people familiar with that deal.
SoftBank Group Corp. announced on Friday that it has secured nearly $21 billion in additional potential debt, bolstering its artificial intelligence (AI) financing capabilities. In a separate jumbo bond deal, the Japanese conglomerate aims to raise between $10 billion and $20 billion next week. The increase includes a $5 billion expansion to its margin loan backed by shares of its chip unit Arm Holdings Plc, now totaling $25 billion, and an additional $450 million credit line, bringing the total to $6.5 billion.
Apollo Global Management Inc. is also in talks to boost a SoftBank loan by $3.6 billion to $9 billion to finance its investment in OpenAI, while SoftBank itself has secured an $11.87 billion loan to support its OpenAI investment. These actions contribute to a total committed and potential debt of $20.92 billion that will finance SoftBank's deeper AI investments.
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