SoftBank Raises $11.1 Billion in Bonds for OpenAI Investment
SoftBank Group shares rose over 7% after the company announced it had raised $11.1 billion in bond offerings to fund its latest payment to OpenAI.
SoftBank Group shares increased by more than 7% in Tokyo trading on September 24. The Japanese technology investor announced that it had raised approximately $11.1 billion through bond offerings to finance its latest payment to artificial intelligence firm OpenAI.
The fundraising includes $10 billion in U.S. dollar-denominated senior notes and €1 billion (approximately $1.14 billion) in euro-denominated notes. SoftBank stated that the proceeds will be used for a $10 billion payment for the third and final tranche of its follow-on investment in OpenAI, which is expected to close on October 1. The funds will also cover general corporate purposes.
SoftBank had previously agreed in February to a $30 billion follow-on investment in OpenAI. Upon completion, SoftBank's total investment in the AI company will reach $64.6 billion. This investment is expected to result in SoftBank holding approximately a 13% stake, amid increased investor scrutiny of the company's rising leverage.