SoftBank aims for a $10 billion margin loan secured by OpenAI shares at SOFR + 425 basis points as its leverage increases.

      Summary: SoftBank is attempting to secure a $10 billion margin loan, collateralized by its shares in OpenAI, with an interest rate of SOFR + 425 basis points (approximately 7.88%). This loan has a two-year term and includes an option for a one-year extension. It adds to a $40 billion bridge loan taken out in March, raising SoftBank’s total investment in OpenAI to around $64.6 billion for a roughly 13% stake. At OpenAI’s valuation of $852 billion, this stake is theoretically worth about $110 billion. However, S&P has downgraded SoftBank’s outlook to negative (BB+), citing a $32 billion funding shortfall expected over the next two years.

      According to Bloomberg, SoftBank is seeking to borrow $10 billion against its OpenAI shares, creating an additional layer of debt related to its investment in artificial intelligence. The loan is proposed with a two-year term and an option for a one-year extension, at a rate of about 425 basis points above the secured overnight financing rate, equating to around 7.88% at current levels. The details of the deal remain unconfirmed, and the specific lenders involved have not been disclosed. SoftBank is essentially borrowing against the estimated value of a private company to fund further investments in the same entity, creating a recursive leverage structure that works effectively until it doesn’t.

      This isn’t the first margin loan SoftBank has pursued or its most complicated financial arrangement this year. Back in March, the company secured a $40 billion bridge loan through JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and MUFG Bank, aimed at a $30 billion follow-up investment in OpenAI and other corporate needs. The bridge loan underwent a soft launch in mid-April, inviting additional lenders to contribute around $5 billion each. The new $10 billion margin loan is layered on top of this. Currently, SoftBank’s total debt is around 20.45 trillion yen, approximately $135 billion.

      Regarding SoftBank’s stake in OpenAI, its total investment will amount to about $64.6 billion following the conclusion of the $30 billion follow-on investment, yielding a roughly 13% ownership of the company. The original investment, set to conclude by late December 2025, ranged from $40 to $41 billion: $7.5 billion in direct investment, $11 billion syndicated with other investors, and a final $22 to $22.5 billion tranche. To finance this position, Masayoshi Son divested SoftBank's entire stake in Nvidia for $5.83 billion and $12.73 billion in T-Mobile stock between June and December 2025, subsequently borrowing an additional $40 billion. He is now seeking to borrow $10 billion on top of that.

      The notional value of the collateral has fluctuated significantly since the initial investment. SoftBank’s $40 billion was invested at OpenAI's pre-money valuation of $300 billion in March 2025. By March 2026, OpenAI reached a staggering post-money valuation of $852 billion following a record funding round, supported by Amazon with $50 billion, Nvidia with $30 billion, and SoftBank’s own $30 billion follow-up. At this valuation, SoftBank’s 13% stake appears to be worth around $110 billion, making a $10 billion margin loan seem relatively modest, roughly 9% of the collateral’s paper value. However, the real question remains what that value will hold if market conditions shift.

      In terms of liquidity, the situation is contrasting to SoftBank's past loans. In 2018, when SoftBank secured an $8 billion loan against its Alibaba stake, the borrowing cost was LIBOR plus 150 basis points, involving ten banks. Alibaba was publicly traded and highly liquid, allowing lenders to recover their investments swiftly in the case of default.

      In contrast, the proposed OpenAI margin loan carries an interest rate of SOFR plus 425 basis points, nearly triple the previous spread. This discrepancy reflects not only broader market conditions but the nature of the collateral itself. As a private company, OpenAI shares are not traded on public exchanges, leading to infrequent and opaque secondary market transactions subject to company approval. Investors have expressed skepticism about OpenAI’s $852 billion valuation, with reports indicating a seller-to-buyer ratio of five-to-one in secondary markets. If SoftBank were to default on this loan, lenders would be left holding shares in a private company with questionable market liquidity in a sector where sentiment can change rapidly. The banks have priced this risk into the 275 basis point spread premium over the Alibaba loan, though whether this is adequate remains to be seen.

      As of December 2025, SoftBank’s loan-to-value ratio was approximately 20.6%, with current estimates around 19%. The company has set a self