SoftBank Group Chairman Masayoshi Son is once again raising the stakes. As the firm mobilizes debt worth nearly 60 trillion won for a massive investment in U.S. artificial intelligence company OpenAI, global financial markets are watching his moves closely.
According to a Bloomberg report published on the 15th of last month, SoftBank has entered the stage of recruiting additional banks to participate in a $40 billion (about 60 trillion won) loan. The transaction is in a so-called “soft launch” phase, with the original lead banks now opening the door for others to join.
◆ A megadeal in which each bank shoulders about 7 trillion won
The scale of this loan is immediately apparent from the numbers. Each additional participating bank will be responsible for about $5 billion, or roughly 7 trillion won. From a bank’s perspective, it means betting about 7 trillion won on a single deal.
The first institutions to underwrite the loan were major U.S. banks such as JPMorgan Chase and Goldman Sachs, along with Japan’s three megabanks: Mizuho Bank, Sumitomo Mitsui Banking, and Mitsubishi UFJ Financial Group. These five banks are shouldering the risk first, and now additional lenders will share part of it. The maturity date is March 25, 2027, leaving just over a year.
The terminology may sound unfamiliar, but the idea is simple. A bridge loan is a short-term loan that acts as a “bridge” until large funds come in. When money is expected to arrive but timing is delayed, a company borrows from banks first to meet immediate obligations and repays it later. A sub-underwriter can be understood as an additional guarantor who shares part of the risk.
According to follow-up Bloomberg reporting, at least eight banks had expressed interest as of the end of last month. Major European banks including HSBC in the U.K., BNP Paribas in France, and Intesa Sanpaolo in Italy have newly joined. A deal originating from one Japanese company has expanded into a structure involving banks across the United States, Europe, and Asia.
◆ More than 44 trillion won already poured into OpenAI
The reason Son is going this far is focused on one company: OpenAI. SoftBank has already invested more than $30 billion, or about 44 trillion won, into the company behind ChatGPT. This 60-trillion-won loan is effectively additional ammunition for more OpenAI investment.
Another key asset SoftBank boasts is ARM Holdings, the British semiconductor design company. SoftBank holds about 87 percent of ARM. It is a core company in smartphone chip design and has deep ties to Korea’s semiconductor industry. For SoftBank, OpenAI and ARM are its two main holdings.
Once this loan is executed, OpenAI’s cumulative investment will rise to about $64.6 billion, or roughly 95 trillion won, and SoftBank’s stake is expected to increase to around 13 percent. The fate of one Japanese company is effectively tied in full to the success of ChatGPT.
◆ Credit agencies and markets warn, “This is risky”
The problem is debt. The picture Son is drawing may be dazzling, but the liabilities supporting it are piling up heavily. That is why market participants remain uneasy.
In March, S&P Global Ratings downgraded SoftBank’s outlook from “stable” to “negative.” A negative outlook signals an increased likelihood of a future downgrade. It also means the company may have to pay higher interest when borrowing money.
S&P’s main concerns were twofold: OpenAI investment could strain SoftBank’s cash position, and the credit quality of its holdings could deteriorate. In short, the agency was warning that SoftBank is putting too much weight on one bet.
◆ Son is also pushing bond issuance at the same time
In addition to loans, SoftBank is also tapping the bond market. It is reportedly considering issuing six types of bonds in both dollars and euros and is in discussions with investors.
The logic appears to be that a bridge should have as many supports as possible. Relying only on bank loans would not be enough; SoftBank needs to raise funds in the bond market as well to spread the burden of a 60-trillion-won commitment.
SoftBank declined to make an official comment on the matter. A company spokesperson reportedly refused to answer questions from Bloomberg.
◆ Why Korea should pay attention
Son’s bet is not merely a matter for one Japanese company. ARM, which SoftBank holds, is a company that influences the semiconductor design standards used by Samsung Electronics and SK hynix. OpenAI, meanwhile, sits at the center of the global AI ecosystem through ChatGPT and is actively interacting with Korean IT companies.
If SoftBank’s finances come under pressure, the impact could spread to ARM’s management strategy, OpenAI’s future capital-raising efforts, and the broader global AI investment climate. Korean semiconductor and AI companies would not be immune to those currents.
Son has previously suffered losses after pouring huge sums into startups such as Uber and WeWork through Vision Fund. That is why analysts say he now appears to be making his final big bet on OpenAI, a card he believes is more certain.
The outcome of the wager will depend on how far OpenAI grows in the years ahead and whether SoftBank can recover its investment through an initial public offering. The market is holding its breath to see whether Son’s 60-trillion-won bridge will safely reach the other side.