SoftBank Seeks Record $16.5 Billion Loan to Fund AI Initiatives in the US

SoftBank Group Corp. is on the hunt for a record-breaking $16.5 billion loan to fuel its artificial intelligence (AI) investments in the United States, according to sources familiar with the matter. This would mark the company’s largest-ever loan solely in US dollars, underscoring SoftBank’s growing commitment to the booming AI sector.

The loan, a bridge facility with a term of approximately 12 months, is still in its early stages of negotiation with banks. Sources, who asked to remain anonymous, noted that the deal could evolve over the coming weeks. A SoftBank representative declined to comment on the discussions at this stage.

This strategic funding is part of SoftBank’s broader effort to accelerate its $500 billion AI infrastructure project in the US. Along with its robotics and semiconductor ambitions, the company is positioning itself as a key player in the AI space. Despite collaborating with major names like OpenAI, Oracle Corp., and Abu Dhabi’s MGX on the Stargate AI venture, SoftBank remains the primary financier for the data center project it promised to US President Donald Trump.

The loan could also enable SoftBank to take a leading role in a record-breaking $40 billion funding round for OpenAI, the creator of ChatGPT. This round, which would value OpenAI at a staggering $300 billion, is set to become the largest financing round in history. The Stargate initiative is part of SoftBank’s broader effort to enhance the widespread adoption and availability of OpenAI services.

SoftBank’s latest loan request would far exceed its previous record, which was a $10 billion margin loan in 2021, secured with its shares in Alibaba Group Holding Ltd. That loan involved at least 14 banks and set the stage for SoftBank’s push into AI. Now, with even bigger ambitions, SoftBank’s bid for $16.5 billion highlights its determination to lead in the rapidly evolving tech landscape.

As SoftBank continues to invest in AI and related technologies, this loan marks a significant step in its quest to shape the future of artificial intelligence globally.