SoftBank Group Corp. (OTC:SFTBY) is reportedly scaling back plans for a margin loan backed by its stake in OpenAI after some lenders raised concerns over the valuation of the privately held artificial intelligence startup.
According to a Bloomberg report on Friday, the Japanese investment giant and its bankers have discussed reducing the target size of the loan to as low as $6 billion, down from an initial goal of $10 billion. Discussions with potential creditors are ongoing, and the final amount could still change, the report said.
SoftBank and OpenAI did not immediately respond to Benzinga‘s requests for comment.
SoftBank’s AI Bet Grows
The proposed financing would use SoftBank’s investment in OpenAI as collateral. Some lenders were said to be cautious about assigning a reliable valuation to the ChatGPT maker, given that OpenAI remains unlisted, according to the report.
The two-year margin loan would include an option for SoftBank to extend the term by an additional year, Bloomberg had reported last month.
The development comes …
This post was originally published here
