SoftBank Increases Arm Margin Loan to $25 Billion Amid AI Investments
SoftBank Group Corp. has raised its margin loan backed by shares in chipmaker Arm Holdings Plc from $20 billion to $25 billion, according to sources familiar with the matter. The move is part of SoftBank founder Masayoshi Son's strategy to fund growing investments in artificial intelligence (AI), including a nearly $65 billion commitment to OpenAI. The loan uses 769 million Arm shares as collateral and has been increased for the third time since its initial launch at $8.5 billion in 2023. The interest rate remains around 225 basis points over SOFR, with strong lender demand driven by a sharp rise in Arm's share price this year. SoftBank is among major tech firms like Oracle and Meta that are heavily investing in AI infrastructure despite concerns about uncertain returns on these large-scale projects.
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Topics: AI investments Arm Holdings margin loan OpenAI SoftBank