SoftBank Group is pursuing a $10 billion loan backed by its stake in U.S. artificial intelligence leader OpenAI, as the firm ramps up borrowing to fund its expansion into AI.
Following the announcement, credit-default swaps rose by about 10 basis points, according to Bloomberg. The increase brings it to roughly 360 basis points, nearing March’s one-year high of 376 basis points.
The $10 billion margin loan—a revolving line of credit that allows a firm to borrow cash to finance additional investments—would have a two-year term. Under its terms, SoftBank would have the option to extend the loan for an additional year, sources told Bloomberg.
Softbank has previously made large investments in Sam Altman‘s company. The firm made an additional follow-on investment of $30 billion earlier this year, representing a 13% ownership interest in the company.
“AI is transforming the world at an unprecedented pace. OpenAI …
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