SoftBank in talks to borrow $16 billion for AI after $2.4 billion loss—Is this bet sustainable?

SoftBank CEO Masayoshi Son is making another big move in AI. The Japanese tech giant is in talks to secure a $16 billion loan to fuel its artificial intelligence ambitions, according to a report from The Information. The borrowing spree may not stop there—SoftBank is considering taking out another $8 billion in early 2026.

The company, which reported a $2.4 billion loss in the third quarter, has been aggressively expanding its AI investments. Reuters previously reported that SoftBank was in discussions to put up to $25 billion into OpenAI, the company behind ChatGPT. This would be in addition to the $15 billion it has already pledged to Stargate, an initiative involving Oracle, OpenAI, and SoftBank.

The Information had earlier reported that SoftBank was looking to invest a total of $40 billion into Stargate and OpenAI, with plans to borrow up to $18.5 billion using its publicly traded assets as collateral.

“The big tech investor is in talks to borrow $16 billion in its latest debt deal to fund AI, with potentially more to come, The Information reported.

Project Stargate, a joint venture between Oracle, OpenAI, and SoftBank, is aiming to pour up to $500 billion into AI development to keep the U.S. ahead of China and other global competitors. The project was introduced at the White House in January, with former President Donald Trump, Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison in attendance.

SoftBank’s latest borrowing plan signals a firm commitment to AI, but it also raises questions about sustainability. After posting significant losses, doubling down on AI could either pay off in a big way or add to the financial strain. Investors will be watching closely.

SoftBank’s Vision Fund segment recorded a loss of 352.75 billion yen for the quarter ending Dec. 31, wiping out gains from the previous two quarters. Factoring in administrative costs and currency fluctuations, the total loss for the Vision Fund segment came to 309.93 billion yen.