SoftBank’s chief executive Masayoshi (Masa) Son has again increased the company’s leveraged exposure to the artificial intelligence sector. In its earnings report, SoftBank disclosed that it borrowed $10 billion from a group of global lenders, using its stake in OpenAI as collateral for the loan.
According to the company, the $10 billion facility was taken in July to finance its most recent investment in the AI research lab OpenAI. Filings show that the stake in OpenAI was itself partially acquired with borrowing from many of the same lenders who provided the July loan.
The arrangement mirrors Son’s earlier practice of borrowing against SoftBank’s holdings in firms such as Alibaba and Yahoo to free up capital for new investments. The notable distinction this time is that the pledged collateral is a position in an AI lab rather than direct shares of operating, revenue-generating businesses.
The disclosure highlights SoftBank’s continued reliance on leverage to pursue large technology bets and underscores how AI-related assets have become significant enough in value to be used as loan collateral.
Key points:
- SoftBank reported a $10 billion loan from international lenders in its earnings filing, with the company saying the funding was taken in July to back its latest OpenAI investment.
- Filings indicate the OpenAI stake was partly bought using loans provided by many of the same lenders now extending the $10 billion facility.
- The move echoes Masayoshi Son’s prior strategy of borrowing against major holdings (for example Alibaba and Yahoo) to finance further investments, though past collateral often consisted of established, profitable businesses.
The company’s public statements and regulatory filings provide the details of the transaction and its timing. The original report was written by Liz Hoffman.
