SoftBank to borrow over $11 billion in risky bonds for OpenAI stake
SoftBank plans over $11 billion in junk bonds to fund its OpenAI stake and refinance short-term loans.
SoftBank plans to raise more than $11 billion through high-yield junk bonds to fund another payment for its OpenAI stake, the Financial Times reported, citing investor documents. The deal is sized at $10 billion plus 1 billion euros, with terms expected Thursday and the OpenAI payment due in October. SoftBank had already arranged short-term loans of up to $40 billion and wants longer-term debt, which could temporarily exceed its own debt ceiling. The FT also said OpenAI expects to burn nearly $280 billion in cash by the end of 2030, while SoftBank's data-center business relies on OpenAI contracts.
- SoftBank plans $10 billion plus 1 billion euros of junk bonds.
- Bond terms are expected Thursday; the OpenAI payment is due in October.
- SoftBank already lined up up to $40 billion in short-term loans.
- The FT says OpenAI may burn nearly $280 billion in cash by the end of 2030.
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- SoftBankOpenAIFinancial Times
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From the original article
1 min read at the-decoder.comSoftBank plans to borrow more than $11 billion from investors through risky bonds to fund another payment for its stake in OpenAI. The article SoftBank to borrow over $11 billion in risky bonds for OpenAI stake appeared first on The Decoder.
By Maximilian Schreiner · the-decoder.com
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