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SoftBank issues $11.1 billion in bonds to fund OpenAI investment
Key points
- SoftBank issued $11.1 billion in bonds.
- Funds will cover a $10 billion payment for OpenAI investment.
- SoftBank's total OpenAI investment will reach $64.6 billion.
- The investment will give SoftBank a 13% stake in OpenAI.
Bond Issuance Details
SoftBank Group announced the issuance of $10 billion in dollar-denominated senior notes and 1 billion euros ($1.14 billion) in euro-denominated notes. This totals approximately $11.1 billion in new debt.
Funding OpenAI Investment
The proceeds from the bond sale are primarily allocated to fund a $10 billion payment. This payment is for the third and final tranche of SoftBank's $30 billion follow-on investment in OpenAI, which is expected to close on October 1. The remaining funds will be used for general corporate purposes.
Increased Stake in OpenAI
This latest investment will bring SoftBank's cumulative investment in OpenAI to $64.6 billion. Upon completion, SoftBank will hold an approximately 13% stake in the ChatGPT maker. SoftBank initially agreed to the $30 billion investment in February.
Market Reaction and Strategy
Following the announcement, SoftBank Group's shares jumped over 7% as Japanese markets reopened. The bond sale highlights CEO Masayoshi Son's continued focus on artificial intelligence, despite increasing scrutiny from investors regarding SoftBank's financing methods and the impact of rising leverage on its balance sheet.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
SoftBank Group issued $11.1 billion in dollar and euro-denominated bonds to finance a $10 billion payment for its follow-on investment in OpenAI. This bond issuance supports SoftBank's strategy to increase its stake in OpenAI to approximately 13% with a cumulative investment of $64.6 billion.