SoftBank raises $11.1bn in bond markets to fund OpenAI expansion

SoftBank Group secured $11.1 billion through a multi-currency bond issuance on Thursday, 24 September, to fund its intensifying expansion into the artificial intelligence sector. The Japanese technology conglomerate issued both dollar- and euro-denominated senior notes to institutional investors, according to official offering documents. Breakdown of bond tranches The dollar-denominated portion of the sale raised $10 billion across three tranches. This included $1 billion in 3.5-year notes at a yield of 8.625%, $4.5 billion in 5.5-year notes at 9.25%, and $4.5 billion in 7.5-year notes at 9.75%. Simultaneously, SoftBank raised €1 billion through two €500 million tranches with maturities of four and six years, carrying yields of 7.125% and 8% respectively. The group confirmed the capital will be deployed to finance the final $10 billion installment of a $30 billion follow-on investment in OpenAI, the San Francisco-based creator of ChatGPT. This capital injection is the primary trigger for the massive debt offering as SoftBank pivots its balance sheet toward generative AI infrastructure and startups. OpenAI exposure reaches record levels Once this final tranche is completed, SoftBank’s total cumulative investment in OpenAI will reach $64.6 billion. This move concentrates a significant portion of the group's liquidity into a single entity, reflecting founder Masayoshi Son’s strategy to dominate the AI ecosystem. The high yields offered on these bonds, ranging from 7.125% to…