SoftBank Group is reportedly seeking a $10 billion margin loan, collateralized by its substantial stake in OpenAI. This proposed loan features a two-year term, with an option for a one-year extension, and an interest rate of approximately 425 basis points above the Secured Overnight Financing Rate (SOFR), translating to roughly 7.88% at current levels. This move further deepens SoftBank's highly leveraged investment strategy in the artificial intelligence sector.
This $10 billion margin loan is not SoftBank's first significant financing arrangement this year. In March, the company secured a $40 billion bridge loan, underwritten by a syndicate of major banks including JPMorgan Chase and Goldman Sachs. That bridge loan was earmarked for a $30 billion follow-on investment in OpenAI and general corporate purposes. The new $10 billion margin loan is layered on top of this existing debt. Consequently, SoftBank's total debt now stands at approximately 20.45 trillion yen, equivalent to around $135 billion.
Upon the completion of its $30 billion follow-on investment, SoftBank's cumulative commitment to OpenAI will reach approximately $64.6 billion, granting it roughly a 13% stake in the prominent AI company. The initial investment, slated for completion by late December 2025, totaled $40 billion to $41 billion, comprising a $7.5 billion direct investment, $11 billion syndicated with co-investors, and a final tranche of $22 billion to $22.5 billion. To finance this extensive position, Masayoshi Son strategically divested SoftBank's entire Nvidia stake for $5.83 billion and $12.73 billion in T-Mobile stock between June and December 2025, subsequently borrowing an additional $40 billion, and now an extra $10 billion.
The notional value of SoftBank's collateral in OpenAI has significantly appreciated since the initial investment. SoftBank's initial $40 billion was invested when OpenAI's March 2025 pre-money valuation stood at $300 billion. By March 2026, OpenAI's record funding round closed at an $852 billion post-money valuation, anchored by major investors like Amazon ($50 billion), Nvidia ($30 billion), and SoftBank's own $30 billion follow-on. At this latest valuation, SoftBank's 13% stake is notionally worth approximately $110 billion.
Despite the substantial appreciation of its OpenAI stake, SoftBank faces its own financial headwinds. S&P has downgraded SoftBank’s outlook to negative (BB+), and the company is projected to have a $32 billion funding gap over the next two years. This high-interest margin loan underscores the intricate balance between pursuing high-growth AI opportunities and managing escalating financial leverage in the dynamic tech investment landscape.