Japan’s technology conglomerate SoftBank Group is seeking a loan of up to $40 billion to help finance its investment in artificial-intelligence firm OpenAI, according to reports citing people familiar with the matter.
The proposed borrowing could become SoftBank’s largest ever US-dollar-denominated loan, reflecting the company’s aggressive strategy to expand its footprint in the rapidly growing artificial-intelligence sector.
Reports indicate the planned financing may take the form of a bridge loan with a maturity of about 12 months, with major financial institutions, including JPMorgan Chase, expected to help arrange the funding.
The move comes as SoftBank doubles down on its investment in OpenAI, the company behind the widely used AI system ChatGPT, which has become a central player in the global race to develop advanced artificial intelligence technologies.
SoftBank previously committed around $40 billion to OpenAI as part of one of the largest private funding rounds in the technology sector, valuing the AI company at hundreds of billions of dollars.
Industry analysts say the new borrowing effort highlights the intensifying global competition for AI leadership, with major technology firms and investors pouring billions of dollars into infrastructure, data centers and advanced computing systems required to develop next-generation AI models.
Neither SoftBank nor OpenAI immediately commented on the latest report regarding the proposed financing.