SoftBank eyes up to US$40 billion loan to fund OpenAI investment, Bloomberg News reports

Japanese conglomerate SoftBank is seeking ​a loan of up to US$40 billion, primarily ‌to finance its investment in ChatGPT-maker OpenAI, Bloomberg News reported on Friday, citing people familiar with the ​matter.

The bridge loan would hold a ​roughly 12-month tenor, Bloomberg reported, with four ⁠lenders, including JPMorgan, underwriting the facility.

Talks with banks ​are ongoing, and terms could change, according to ​the report.

Reuters could not immediately verify the report. OpenAI and SoftBank did not immediately respond to Reuters' ​request for a comment.

SoftBank Chief Executive Masayoshi ​Son has made an "all in" bet on OpenAI, ramping ‌up ⁠investment in artificial intelligence. The Japanese firm held a stake of about 11% in OpenAI at the end of last year.

OpenAI is ​laying the ​groundwork for ⁠an IPO that could value the company at up to US$1 trillion, ​Reuters exclusively reported last year.

Last month, ​the ⁠firm said it would raise US$110 billion in a funding round that could value it at US$840 billion, ⁠including US$30 ​billion each from SoftBank ​and U.S. chipmaker Nvidia, and US$50 billion from e-commerce retailer Amazon.

Reuters