SoftBank Group shares moved higher on Thursday following a Reuters report that the Japanese technology investor had restarted negotiations for a $10 billion loan backed by its OpenAI stake.
The proposed financing would support SoftBank’s expanding artificial intelligence investment strategy.
SoftBank Shares Outperform the Japanese Market
SoftBank Group shares climbed 2.3% to ¥6,137, outperforming the broader Japanese stock market. Meanwhile, the Nikkei 225 gained approximately 0.5%.
Investors reacted positively to reports that the company had revived plans to secure additional funding linked to its investment in OpenAI.
SoftBank Restarts $10 Billion Loan Talks
According to Reuters, SoftBank has resumed discussions with a group of lenders after previous negotiations stalled.
Banks had reportedly been reluctant to accept shares in OpenAI, the privately held developer of ChatGPT, as the only collateral supporting the loan.
Privately held shares are generally more difficult to value and sell than publicly traded securities. As a result, lenders often consider loans backed by private-company stakes to carry greater risk.
Corporate Guarantee Could Reduce Lender Risk
To address lenders’ concerns, SoftBank is reportedly offering a corporate guarantee as part of the new financing structure.
The guarantee would allow banks to seek repayment directly from SoftBank if the value of the pledged OpenAI shares was not enough to cover the loan.
Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group are expected to participate in the lending consortium, according to the report.
Masayoshi Son Expands SoftBank’s AI Strategy
The proposed margin loan is part of SoftBank founder Masayoshi Son’s broader effort to increase the company’s exposure to artificial intelligence.
SoftBank has reportedly committed more than $60 billion to OpenAI and related AI infrastructure projects.
These investments include the Stargate data center initiative, which aims to expand the computing infrastructure required to develop and operate advanced artificial intelligence systems.
SoftBank Relies on Debt to Fund AI Investments
SoftBank has increasingly used debt and asset-backed financing to support its aggressive AI investment plans.
However, Reuters reported that the company previously reduced its financing target after facing resistance from potential lenders.
Banks have remained cautious because shares in private companies are harder to value and cannot be sold as easily as publicly listed stocks.
OpenAI IPO Could Strengthen the Collateral
A future OpenAI initial public offering could make SoftBank’s investment easier to value.
OpenAI reportedly filed confidentially for a U.S. IPO last month. A public listing could establish a clearer market price for the company’s shares and improve their usefulness as collateral.
For SoftBank, a successful OpenAI listing could also increase the value and liquidity of one of its most important artificial intelligence investments.
SoftBank Continues Its Major AI Push
The renewed $10 billion loan negotiations highlight SoftBank’s determination to remain a major investor in the artificial intelligence sector.
However, the company’s growing reliance on debt also increases the importance of OpenAI’s future valuation, financial performance, and potential public listing.
