SoftBank cuts planned $10B OpenAI-backed loan after lenders raise valuation concerns

SoftBank’s massive bet on OpenAI is running into a problem that has begun to shadow the AI boom: how do lenders assign a reliable valuation to a private company worth hundreds of billions of dollars on paper?

The Japanese investment giant is scaling back plans for a margin loan backed by its stake in OpenAI after some creditors raised concerns about the deal’s structure and the difficulty of valuing the ChatGPT maker, according to a Bloomberg report published Friday.

“SoftBank Group Corp. has downsized plans for a $10 billion margin loan backed by its OpenAI stake after facing hesitation from some creditors,” Bloomberg reported, citing people familiar with the matter.

SoftBank had initially explored a $10 billion financing package tied to its OpenAI holdings. Discussions have since shifted to a smaller deal that could fall closer to $6 billion, the report said.

“In separate discussions with potential lenders in recent weeks, the Japanese conglomerate and bankers helping it seek the loan have mentioned targeting an amount as low as $6 billion,” Bloomberg added, citing people who asked not to be identified discussing private matters.

The hesitation from lenders offers a rare look at the financial pressure building underneath the AI investment frenzy. OpenAI remains one of the most valuable private companies in the industry, though assigning a stable valuation to an unlisted AI startup has become increasingly difficult as investors pour tens of billions into the sector.

The proposed financing structure involved a margin loan, a type of borrowing where securities are pledged as collateral. In this case, SoftBank planned to use its stake in OpenAI to help secure the debt. Bloomberg previously reported in April that the loan would have a two-year term with an option to extend for another year.

The latest development arrives less than two months after SoftBank secured a separate $40 billion bridge loan to deepen its push into artificial intelligence. That financing package, announced in March, ranked among the largest dollar-denominated borrowings in the company’s history.

SoftBank’s relationship with OpenAI has grown far beyond a standard investment. The company has committed roughly $30 billion through Vision Fund 2 and has steadily positioned itself near the center of the AI infrastructure race. At the end of last year, SoftBank reportedly held an 11% stake in OpenAI.

The two companies strengthened ties further in January after joining forces on Stargate, a large-scale U.S. AI infrastructure initiative aimed at building out data center capacity and compute resources needed to train advanced AI systems.

For SoftBank founder Masayoshi Son, the OpenAI partnership represents one of the company’s most aggressive attempts to regain dominance after years of uneven performance from the Vision Fund. This time, the strategy rests heavily on AI becoming the next foundational layer of the global economy.

The lenders’ hesitation may not derail the deal entirely. Bloomberg reported that discussions remain ongoing and the final size of the borrowing could still change. Still, the pullback signals that parts of the financial world are becoming more cautious about the valuations of private AI companies, even as money continues to flood into the sector.

OpenAI CEO Sam Altman and SoftBank founder Masayoshi Son