SoftBank is preparing a new $60 billion bond to support its investment in OpenAI.

      Sixty billion dollars represents a significant amount of bonds, even for SoftBank Group. The Japanese conglomerate is reportedly planning to raise up to that sum in new debt, as reported by Bloomberg. This target would surpass anything that Masayoshi Son's firm has previously issued and is directly linked to its increasing investment in OpenAI.

      This strategy follows a series of smaller fundraising efforts, including a record ¥600bn ($4.1bn) retail bond and several dollar and euro transactions aimed at international investors. Additionally, it builds on a significant amount of existing loans for OpenAI, including a $40bn bridge loan and a still-outstanding $10bn margin loan secured against SoftBank’s shares in OpenAI.

      The $60bn figure is better understood as a ceiling rather than a single confirmed transaction, as it would encompass multiple tranches across various currencies and investor types, rather than one major institutional deal.

      So far in 2026, SoftBank has issued around $7.8bn in bonds, and viewing the $60bn amount as a program target rather than a single total makes the situation seem a bit less extreme. Nevertheless, it indicates an ambitious pace of borrowing that the group has never pursued before.

      The goal is clear. Son has committed over $60bn to OpenAI, disbursed in $10bn tranches, with the second closing on July 1 under a bridge facility and a third expected in October.

      Bridge debt has always served as a temporary solution. The previous facility involved eight banks, and a bond of this magnitude would enable SoftBank to replace its short-term loans with longer-term investments, shifting from bank debt to the willingness of retail and institutional investors to hold those bonds.

      Those investors have demanded higher costs in return. For example, SoftBank's latest yen retail bond had a coupon of 5.12%, the highest among its yen debt to date, increased from 4.97% on a similar offering earlier this year.

      The retail investor base is a strategic decision. Japanese households have historically provided funding through brokerages, allowing SoftBank to secure large amounts domestically while global investors require higher returns for anything linked to AI.

      The broader context of debt reveals additional complexities. SoftBank has approximately ¥7tn in outstanding bonds and has informed investors of its goal to maintain a loan-to-value ratio below 25%, a challenge that becomes more difficult each time an OpenAI payment is processed.

      Analysts have cautioned about potential liquidity issues, as the company relies on valuable assets like its Arm stake to support new borrowing. Concerns center more on timing than solvency, specifically whether cash inflows align with outgoing commitments.

      A raise of this scale clearly indicates intentions. Son is willing to leverage the balance sheet to meet the demands of the AI strategy and is ready to pay record coupons for the opportunity.

      Rating agencies have taken notice, with S&P changing its outlook to negative in March following a $30bn investment in OpenAI, citing risks associated with a focus on early-stage and privately held businesses. Meanwhile, Moody’s retains SoftBank at Ba2, placing it firmly in speculative territory.

      One of the dilemmas SoftBank faces is that it has essentially become a publicly traded representation of OpenAI itself. Any fluctuations in the AI sector impact its share price, and a delayed public offering leaves market valuations based more on speculation than concrete figures.

      However, the founder remains undeterred, arguing that AI will incur costs of $5tn annually by 2040. From this perspective, a $60bn bond isn't so much a splurge as it is a down payment, with the strategy revolving around being an early mover.

      The immediate challenge lies in timing. With OpenAI’s long-anticipated public listing still on hold and the third $10bn tranche due in October, SoftBank must ensure the bond market remains open and receptive, as $60bn is a substantial request for any market to accommodate all at once.