The Japanese investment company had originally aimed to secure a $10 billion margin loan backed by its OpenAI holdings.

However, discussions with banks and other potential lenders have recently shifted towards a smaller deal that could fall to about $6 billion, according to people familiar with the talks.

The loan is still under discussion and the final size could still change.

Lenders reportedly became cautious because OpenAI is privately owned, making it harder to determine a stable market value for the company.

Although OpenAI was recently valued at around $852 billion in a funding round earlier this year, creditors are wary about using unlisted shares as collateral for such a large borrowing arrangement.

A margin loan allows investors to borrow money against the value of assets they already own. In this case, SoftBank planned to use its OpenAI stake to secure the financing.

The proposed loan would run for two years, with an option to extend it by another year. Reports earlier this year also said the borrowing could carry an interest rate tied to SOFR plus 425 basis points, pushing costs close to 8%.

That is significantly higher than standard corporate lending rates and reflects the risks lenders see in the structure.

SoftBank has increased its financial exposure to OpenAI over the past two years. The company first invested in the ChatGPT maker in September 2024 and later expanded the partnership through Stargate, a large artificial intelligence infrastructure project launched in the United States in January 2025.

In March this year, SoftBank also secured a separate $40 billion bridge loan backed by major banks including JPMorgan and Goldman Sachs.

The company said the funding would support OpenAI investments and broader corporate operations.

Analysts estimate SoftBank’s total investment commitment to OpenAI could eventually reach about $64.6 billion, giving the group roughly a 13% in the company.

At the same time, some analysts believe SoftBank faces a financing gap of around $32 billion over the next two years.

To raise cash, the company has already sold several major assets. In 2025, SoftBank exited its Nvidia position for about $5.8 billion and also sold T-Mobile shares valued at roughly $12.7 billion.

Credit rating agency S&P recently revised SoftBank’s outlook to negative while keeping its BB+ rating, pointing to the company’s debt exposure and aggressive borrowing strategy.

Neither SoftBank nor OpenAI immediately responded to requests for comment following the latest reports on the loan discussions.

The company, led by Masayoshi Son, is strengthening its focus on artificial intelligence as competition increases among global tech firms.

This is SoftBank’s largest borrowing in US dollars. The loan is unsecured and will mature in March 2027. It was arranged by major lenders including JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corp and MUFG Bank.

SoftBank said the funds will partly support its existing commitment to OpenAI. The group had earlier agreed to invest $30 billion in the company through its Vision Fund 2. Some of the loan will also go towards general operations, with plans to repay part of it through asset sales.

After years of mixed results from large bets on companies like Uber and WeWork, Son is now focusing heavily on AI.

OpenAI, backed by Microsoft, has become one of the most influential players in the sector following the rapid adoption of ChatGPT. That surge has drawn fresh capital into the industry and raised the stakes for investors.

SoftBank is also working with OpenAI on the Stargate Project, an initiative announced in 2025 to invest up to $500 billion over four years in AI infrastructure in the United States.

Earlier, in December 2024, Son and then President-elect Donald Trump said SoftBank would invest $100 billion in AI and related infrastructure in the US over the same period.

The scale of this new loan shows how far SoftBank is willing to go. Even with a heavy debt load, the group is placing itself at the centre of the global AI growth, where companies such as Microsoft, Google and Amazon are all expanding their chances.

This is its fourth straight quarterly increase, with earnings boosted by the value of its investment in OpenAI. 

SoftBank has invested more than $30 billion, holding 11% of the AI firm. By the end of December, it expects total profits from this investment to reach $19.8 billion.

OpenAI is reportedly preparing a new funding round, valued at $830 billion and SoftBank may invest an additional $30 billion alongside Amazon and Nvidia. 

Analysts warn that the conglomerate is now being seen as a publicly traded proxy for OpenAI.

To fund its investments, SoftBank sold parts of its holdings in Nvidia and T-Mobile, raised bonds, and also borrowed against other holdings such as chip designer Arm and its domestic telecom unit, SoftBank Corp. 

The company’s loan-to-value ratio rose to 20.6% in December, up from 16.5% three months earlier. Cash reserves fell to ¥3.8 trillion over the same period.

Masayoshi Son, SoftBank founder and CEO, directly owns 17% of Vision Fund 2, the investment vehicle holding the OpenAI stake. The fund recorded $2.4 billion in valuation profits from OpenAI in the quarter, adding to cumulative profits of $19.8 billion over nine months.

SoftBank’s shares rose 2.4% on the day of the earnings release, slightly ahead of a flat market. The results reveal the company’s heavy focus on AI, showing both the possible rewards and the risks of concentrating investments in a single firm.

The deal places the Japanese group among the company’s most influential outside backers at a time when demand for advanced computing power is increasing.

Masayoshi Son, SoftBank founder, has pushed capital into OpenAI through a mix of direct funding and syndicated co-investment, spreading part of the risk to other investors while keeping strategic control close. 

Of the total sum, $22.5 billion was completed this week, following an earlier $7.5 billion injection in April. Other backers contributed an additional $11 billion through the syndicated structure.

The transaction raises OpenAI’s valuation far beyond where it stood earlier this year. In March, the business was priced at about $300 billion on a post-money basis. 

By October, a secondary share sale had pushed that figure to around $500 billion, according to PitchBook. That instantaneous re-rating shows how quickly expectations have changed across the sector.

Only days earlier, SoftBank agreed to buy DigitalBridge Group for $4 billion, adding a major digital infrastructure investor to its portfolio. 

Taken together, the two deals point to a deliberate strategy which includes control of the software platforms driving computing, while also owning the physical backbone that keeps them running. 

Son has previously described artificial intelligence as the “axis of global technology markets”, and this latest move reveals that belief in concrete financial terms.

OpenAI now sits at the centre of an initiative to build capacity at huge scale. The company is working with Oracle and other partners on Project Stargate, a multi-year data-centre programme designed to support more powerful models and heavier workloads. 

The initiative is expected to cost tens of billions of dollars and ranks among the most ambitious infrastructure efforts the industry has seen.

Across global markets, competition for computing resources has strengthened. Large technology firms are committing vast sums to secure long-term access to data centres, specialised chips and energy supply. 

SoftBank’s wager is similar to that of competitors, but the size of its commitment differs from those typically associated with sovereign wealth funds.

Despite the scale of the spending, SoftBank has said its financial policies stand unchanged, including its approach to leverage and cash management. 

This was driven by the high valuations in OpenAI and other Vision Fund assets.

The figure, far above analysts’ estimates of ¥207 billion, is a turnaround for the Japanese conglomerate and its most profitable quarter to date. 

The result reveals how Masayoshi Son’s focus on artificial intelligence is bolstering SoftBank’s growth and enhancing exposure to a sector many investors now fear may be entering a bubble.

The company’s Vision Fund unit reported a record investment gain of ¥3.5 trillion for the quarter, with OpenAI alone contributing ¥2.16 trillion. 

The rally in global technology stocks and a surge in AI-related valuations drove this growth, sending SoftBank’s shares to new highs. It was the Vision Fund’s third consecutive profitable quarter, a recovery from the losses that once characterised its track record.

SoftBank’s assertive push into AI reiterates Son’s conviction that artificial intelligence represents the next economic revolution. 

In March, the group led a $40 billion funding round that valued OpenAI at $300 billion. By October, it joined a consortium of investors acquiring $6.6 billion worth of OpenAI employee shares, at an even higher $500 billion valuation.

These initiatives are being financed through an intricate mix of asset sales, bonds, and loans. The company offloaded 32.1 million Nvidia shares in October, raising $5.83 billion, while also issuing bonds in yen, dollars, and euros worth more than ¥620 billion, $2.2 billion, and €1.7 billion respectively since April. 

It further secured an $8.5 billion bridge loan to fund its OpenAI investment and a $6.5 billion facility for its planned acquisition of semiconductor firm Ampere.

Son described this phase as the company’s “most ambitious investment period” since launching its Vision Fund vehicles in 2017 and 2019. He has long been known for his courageous, leveraged investments in transformative technologies. His early stake in Alibaba proved legendary, yet not all ventures, including WeWork, ended well.

However, even with the SoftBank historic profit, analysts warn of a potential “AI bubble,” as sky-high valuations risk overtaking real-world profitability.

The Japanese group, SoftBank will purchase Intel common stock at $23 per share, giving it close to a 2% stake and making it one of Intel’s top shareholders. 

The announcement, made after U.S. markets closed on Monday, sent Intel shares up more than 5% in after-hours trading, while SoftBank’s stock slipped over 5% in Tokyo.

Masayoshi Son, chairman and CEO of SoftBank, said, “Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

The investment lands at a challenging moment for Intel. Under new CEO Lip-Bu Tan, the company has been cutting costs and narrowing focus. It shut down its automotive chip division earlier this year, slashed between 15% and 20% of its foundry workforce, and doubled down on its client and data centre chip portfolio, where it still lags behind rivals Nvidia and AMD.

Tan, who has been navigating both corporate restructuring and political issues, welcomed SoftBank’s support. “We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”

Beyond chips, SoftBank’s CEO Son has been positioning the group as a key player in the next wave of artificial intelligence infrastructure. Earlier this year, SoftBank acquired Foxconn’s Lordstown, Ohio factory, which will be repurposed to manufacture AI data centre equipment. 

The site forms part of the $500 billion Stargate project, a venture involving SoftBank, Oracle and OpenAI, aimed at building large-scale AI server capacity in the United States.

Meanwhile, U.S. politics are heavy over the semiconductor sector. The Trump administration has floated the idea of converting CHIPS Act funds into equity, potentially giving Washington as much as a 10% stake in Intel.

The White House has also threatened new tariffs on imported chips in a bid to strengthen domestic production and cut reliance on Asian giants like TSMC and Samsung.

The announcement, made on Monday, will enable OpenAI to expand its reach outside of the United States.

The new venture, named SB OpenAI Japan, is a 50-50 collaboration between OpenAI and SoftBank’s telecommunications arm. The companies have agreed that SoftBank will allocate $3 billion annually to integrate OpenAI’s advanced technology across its wide range of operations. 

Looking to develop its tech portfolio, SoftBank’s CEO, Masayoshi Son, confirmed the collaboration, stating, “A Memorandum of Understanding has just been formally signed between Softbank and OpenAI to establish a 50-50 joint venture.”

Son further introduced an innovative AI tool called Cristal, designed to assist businesses in real-time by processing system data, reports, emails, and meetings.

OpenAI’s CEO, Sam Altman, who is currently on a global tour that includes Tokyo, said, “The world is going to just need so much computing.” 

Altman, alongside Son, also met with Japan’s Prime Minister, Shigeru Ishiba, to discuss the potential impact of this collaboration on Japan’s business sector.

This venture is also a means for OpenAI to expand its influence in the Asian market, and SoftBank’s financial commitment reiterates its intent to make investments in the AI field. 

The partnership will see SoftBank’s group companies leverage OpenAI’s technology to further innovate and enhance their operations.

The announcement coincides with rapid AI developments, particularly with the emergence of new AI models like DeepSeek, which has raised questions about the noteworthiness of US-based companies. However, with SoftBank’s backing, OpenAI is thriving to boost its leadership in the AI space, both in Japan and globally.

The joint venture aims to decentralise AI adoption worldwide, with Japan serving as a key entry point for the wider Asian market. Through this collaboration, the two tech giants hope to enhance AI integration into corporate operations, ultimately influencing AI in business across the globe.

With a budget of $500 billion over the next four years, the project aims to enhance computing capacity, create hundreds of thousands of jobs, and strengthen national security. 

An initial $100 billion will be deployed immediately, starting with a flagship data centre project in Texas.

SoftBank and OpenAI are the lead partners, with SoftBank handling financial responsibilities and OpenAI overseeing operations. 

Masayoshi Son, SoftBank’s CEO, has been named chairman of Stargate, with major stakeholders including MGX, NVIDIA, Arm, and Microsoft. Speaking about the scale of the project, Oracle co-founder Larry Ellison said, “Each building is a half a million square feet. There are 10 buildings currently being built.”

The Stargate initiative has already begun construction in Texas, marking the launch of its first data centre, which will eventually expand to other states. These facilities will include cutting-edge AI computing systems developed collaboratively by OpenAI, NVIDIA, and Oracle. 

The partners have also announced plans to scale up to 20 data centre installations by 2029, evaluating additional sites across the country to accommodate future expansion. Reports reveal that these data centres will include innovative AI chips designed by OpenAI, with semiconductor giants Broadcom and TSMC involved in chip production.

A Network of Collaborations

The project builds on longstanding partnerships. OpenAI and NVIDIA have collaborated since 2016, while OpenAI’s relationship with Microsoft has grown through its extensive use of Microsoft Azure for AI model training. Oracle’s existing agreements to supply AI computing resources also strengthen its role in the venture.

SoftBank’s deep involvement in OpenAI predates this project as the company previously committed $500 million to OpenAI’s funding round and an additional $1.5 billion to facilitate a tender offer for its employees. Again, Middle East AI fund MGX, which has invested in OpenAI, will also be leveraged in Stargate.

While the Stargate Project has good prospects, issues about environmental and social impacts haven’t been ignored. Data centres, known for their heavy water usage and high energy consumption, could stress resources in regions with limited infrastructure. Issues about the long-term job creation promised by similar large-scale projects have also been raised.

Nonetheless, experts like Goldman Sachs projects that AI-related data centre demand will account for nearly 19% of total power consumption by 2028, noting the sector’s quick expansion. A McKinsey report forecasts that spending on data centre infrastructure could exceed $250 billion within the next five years.

OpenAI CEO Sam Altman has called for fewer regulatory limitations to accelerate the development of critical infrastructure projects in the United States. Highlighting challenges in an interview, Altman said, “The thing I really deeply agree with [President Trump] on is, it is wild how difficult it has become to build things in the United States… Power plants, data centres, any of that kind of stuff. I understand how bureaucratic cruft builds up, but it’s not helpful to the country in general.”

Nonetheless, the Stargate Project has garnered support from stakeholders and government officials. Hence, with a focus on re-industrialisation and innovation, the initiative is expected to bolster AI infrastructure and boost the United States’ innovation in global AI leverage.