How SoftBank Is Financing Its Massive OpenAI Bet: The Debt Dilemma
Global technology investor SoftBank Group plans to use debt as a familiar method to finance its $40 billion investment in OpenAI, the company behind ChatGPT, according to an announcement made late Monday. The firm, headed by millionaire Masayoshi Son and based in Tokyo, anticipates securing its initial $10 billion portion of the agreement through loans obtained from Japan’s Mizuho Bank as well as other financial institutions, with plans for this tranche to conclude by April. As for the leftover $30 billion, they aim to have it finalized by early 2026. This agreement represents easily the biggest financial commitment made to a startup in history. values OpenAI At $300 billion assuming all funds are invested. The bet Alongside SoftBank's commitment to head the $100 billion initiative, Stargate cloud-computing initiative With OpenAI, this investment represents a significant gamble on the AI startup. entwines the fortunes from SoftBank with an entity anticipating s...