SoftBank Expands Credit Line to $6.5 Billion Amid AI Investments
SoftBank Group Corp. increased its credit line by an additional $450 million, bringing the total facility size to $6.5 billion as it continues expanding investments in artificial intelligence (AI). The previous $6.05 billion credit line was set to expire this month and has now been extended for another year. This move provides SoftBank with greater financial flexibility amid a surge of debt-related activities tied to its AI strategy, particularly its stake in OpenAI. The conglomerate recently raised an additional $21 billion through margin loans backed by shares from Arm Holdings Plc and secured over $20 billion in term loans for its OpenAI investments. SoftBank is also reportedly considering a junk bond offering of up to $20 billion, with investor meetings held this week in New York. Apollo Global Management Inc. has separately discussed increasing an existing loan facility to support the AI venture. SoftBank's aggressive financing strategy reflects growing market concerns about debt-fueled bets on AI amid rising volatility and safety warnings from industry leaders.
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Topics: AI investment corporate strategy credit lines debt financing