SoftBank taps bond market for $11.1 billion to fund AI bets

Technology investor SoftBank Group has raised a total of $11.1 billion through dollar- and euro-denominated bond sales, according to a filing on Thursday, as the company seeks to generate funds for continued investments in artificial intelligence, Reuters reported.

According to Reuters, SoftBank issued $1 billion of senior notes with a three-and-a-half-year maturity, $4.5 billion with a five-and-a-half-year maturity and another $4.5 billion with a seven-and-a-half-year maturity.

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The dollar-denominated bonds carry interest rates of 8.625%, 9.25% and 9.75%, respectively, the filing showed.

SoftBank also issued two €500 million tranches of euro-denominated senior notes, with maturities of four and six years. The notes carry yields of 7.125% and 8%, respectively.

The proceeds will be used to help fund SoftBank's planned investment in OpenAI, the maker of ChatGPT. SoftBank has committed $30 billion to OpenAI, with the latest bond issuance intended to finance the final $10 billion tranche of that commitment.

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Once completed, SoftBank's total investment in OpenAI will reach $64.6 billion.

SoftBank is ramping up its fundraising as it expands its focus on artificial intelligence investments. Earlier this month, the company issued 1 trillion yen ($6.32 billion) of corporate bonds aimed at retail investors, Reuters reported.

SoftBank's latest fundraising comes as the group continues to channel capital toward AI-related assets and businesses, increasing its exposure to the sector. The company has been pursuing a strategy of backing companies and technologies expected to benefit from the rapid expansion of AI.

The bond issuance also adds to SoftBank's borrowing as it seeks to balance its investment ambitions with funding requirements. The company has increasingly turned to debt markets to raise capital for its large-scale AI investments, including its commitment to OpenAI.

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