SoftBank plans to borrow $5 billion, using ARM shares as collateral, to invest in OpenAI

Wallstreetcn
2025.10.11 08:47
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Analysis indicates that considering SoftBank's potential acquisition of Ampere and a series of other transactions, its total capital demand may exceed $30 billion, and it may need to meet this through more asset sales and asset-backed financing in the future

Media reports citing informed sources indicate that SoftBank Group is in deep negotiations with several global banks, planning to use part of its shares in chip design giant ARM as collateral to seek a new loan of $5 billion, aiming to raise "ammunition" for increased investment in OpenAI within this year.

The confidence behind SoftBank's substantial financing largely stems from ARM's strong performance in the capital markets this year, with ARM's stock price recording an increase of over 20% year-to-date.

ARM Becomes a "Cash Cow"

"Financializing" ARM has become a key model for SoftBank to fund its AI ambitions.

Before this new $5 billion loan, SoftBank had already secured a total of $13.5 billion in margin loans through its ARM shares (as of March 2025, of which $5 billion remains unused), and the new loan will increase this figure to $18.5 billion.

Even before ARM's IPO in 2023, SoftBank had locked in about $8 billion in funding through similar means. Eleven banks, including JP Morgan, Barclays, BNP Paribas, and Goldman Sachs, provided this loan by linking the authorization of ARM's IPO to the loan.

Additionally, earlier this year, the group raised a one-year loan of up to $15 billion to support its AI investments in the United States.

Masayoshi Son's "AI Investment Empire"

Masayoshi Son's appetite goes far beyond this; he is building a massive investment empire around AI technology. His layout includes:

  • Heavy Investment in OpenAI: Committing a total of up to $30 billion.

  • Acquisition of Core Technologies: Spending $5.4 billion to acquire ABB Group's robotics division.

  • Building Underlying Computing Power: Partnering with OpenAI and Oracle Corp. to promote a "Stargate" plan with total investments potentially reaching $500 billion, aimed at constructing data centers across the United States.

  • Exploring Advanced Manufacturing: Investigating the establishment of a large manufacturing center for AI industrial robots in the United States.

SoftBank's aggressive strategy reflects the unprecedented capital injection into the AI sector by global tech giants and investors. According to JP Morgan's estimates, the scale of debt related to AI has surged to $1.2 trillion, becoming the largest component of the investment-grade credit market.

Analysts at Bloomberg Industry Research also pointed out that considering SoftBank's potential acquisitions of Ampere and a series of other transactions, its total funding needs may exceed $30 billion, and it may require more asset sales and asset-backed financing in the future to meet these needs

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