According to Bloomberg, SoftBank is using its stake in OpenAI as collateral to secure a $10 billion margin loan. The two-year facility with a one-year extension option carries a preliminary interest rate of approximately 7.88%, though terms are not final. This is not Son's first margin loan move — as of last November, SoftBank had already expanded its margin loan backed by Arm Holdings shares to $20 billion. Now OpenAI shares join the collateral list.
The Numbers Behind the Debt Stacking
SoftBank's borrowing tempo over the past year underscores Son's commitment to AI. In late March, the company closed a $40 billion loan, its largest ever in dollar terms, partly to fund additional OpenAI investments. SoftBank recently pledged another $30 billion to OpenAI, bringing total commitments to over $60 billion. Last month, SoftBank issued a multi-tranche bond raising $3.6 billion, partly to repay a bridge loan tied to OpenAI. The 10-year dollar tranche carried a coupon of 8.5%, a record high for such instruments. From $40 billion to $3.6 billion to now $10 billion, the cost of leverage is rising.
Credit Warning but Lending Continues
Markets have not ignored the risks. In March, S&P revised SoftBank's credit outlook from stable to negative, citing potential damage from massive OpenAI investments. CFO Yoshimitsu Goto acknowledged the loan-to-value (LTV) ratio may temporarily breach the company's self-imposed 25% ceiling. Yet Bloomberg notes that lenders remain willing to fund SoftBank's OpenAI bet — provided the price is right. The 7.88% rate and record-high coupon reflect the risk premium. Meanwhile, SoftBank holds stakes in T-Mobile US, Intel, and ByteDance, which could be sold for financial buffer.
Son's Algorithm: Borrowing to Buy the Future
The logic is consistent: SoftBank pledges OpenAI shares, which have high market recognition. OpenAI just completed a $122 billion funding round, valuing it at $852 billion. Son’s strategy: convert paper wealth into cash via share pledges while OpenAI is still private and illiquid, then reinvest in the next AI node. The chain is clear: keep spending, keep betting, keep borrowing.