SoftBank Issues $11.1 Billion Bonds to Fund OpenAI Investment
Shares of SoftBank Group surged over 7% after announcing an $11.1 billion bond issuance, including $10 billion in dollar-denominated senior notes and €1 billion (about $1.14 billion) in euro-denominated bonds. The funds will be used to finance a $10 billion payment for the final tranche of its $30 billion follow-on investment in OpenAI, which is expected to close on October 1. This move highlights CEO Masayoshi Son's aggressive push into artificial intelligence and brings SoftBank’s total investment in ChatGPT maker OpenAI to approximately $64.6 billion, securing it a roughly 13% stake upon completion. The bond issuance comes amid growing investor scrutiny over how the company will finance its AI ambitions without straining its balance sheet. The market reaction suggests strong confidence in SoftBank’s strategic direction and financial execution.
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Topics: artificial intelligence (AI) bond issuance corporate finance OpenAI investment