SoftBank in talks for $5B Arm-backed loan for OpenAI deal
SoftBank Group is negotiating a $5 billion margin loan with global banks, using shares of Arm Holdings as collateral, Bloomberg reports.
The Japanese conglomerate, led by Masayoshi Son, is in talks with several international lenders to arrange the loan secured against its Arm stock. The company plans to use the proceeds for an additional investment in OpenAI in 2025, according to the report.
SoftBank would tap its Arm stake as collateral for the financing. Arm went public in 2023, and its shares have gained value since the listing. The report did not disclose which banks are involved in the talks, the specific loan terms, or when the deal might close.
SoftBank already invested $500 million in OpenAI's funding round in October 2024, which valued the artificial intelligence company at $157 billion. The Vision Fund 2, one of SoftBank's investment vehicles, participated in that round alongside other backers including Microsoft, Nvidia, and Thrive Capital.
Son has been expanding SoftBank's investments in artificial intelligence companies over the past year. In September 2024, he told investors that he sees AI as the central focus for the company's strategy. SoftBank holds about 90% of Arm's shares after taking the chip designer public on Nasdaq in September 2023. Arm's market value has climbed above $150 billion since its listing.
The margin loan would give SoftBank additional capital to increase its stake in OpenAI without selling its Arm shares. Margin loans allow companies to borrow money using stock holdings as security while maintaining ownership of those shares.
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