SoftBank Group’s efforts to raise at least $6 billion through a margin loan backed by its large stake in OpenAI have stalled, just weeks after the Japanese conglomerate scaled back its initial target from $10 billion, Bloomberg reports, citing people familiar with the matter.
The setback comes as SoftBank weighs various fundraising alternatives and continues to navigate the complexities of one of the largest single-company bets in corporate history. While the company had secured around $5 billion in commitments before the discussions paused, it remains unclear whether those were firm or preliminary.
SoftBank could still revive the margin loan later, but for now, it is exploring other options, the sources said.
Register for Tekedia Mini-MBA edition 20 (June 8 – Sept 5, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab.
The investor’s shares fell as much as 9.7% on Wednesday.
The loan was intended to help finance SoftBank’s more than $60 billion commitment to OpenAI, a position that has drawn increasing scrutiny amid rapid advancements by rivals like Anthropic and questions about long-term valuation sustainability. The company’s exposure has been a point of internal anxiety for some officials, even as OpenAI’s progress has driven significant paper gains for SoftBank.
OpenAI’s confidential filing for a U.S. IPO on Monday, with Goldman Sachs and Morgan Stanley leading the effort and a potential listing as soon as this fall, had earlier improved sentiment among some potential lenders. However, challenges around valuing an unlisted company with explosive but unproven growth prospects contributed to hesitation.
Hua Cheng, head of Asia credit research at AllianceBernstein, offered a perspective on the situation.
“The margin loan is just one piece of a much larger puzzle, and unless we see a clear deterioration in their ability to raise funds this way, we don’t view it as a standalone red flag. The best-case scenario is an OpenAI IPO this year, with SoftBank offloading part of its stake to pay down debt. That would be consistent with what credit investors want,” Cheng said.
A successful OpenAI listing could provide SoftBank with an exit route or collateral flexibility, easing pressure on its balance sheet. However, any delays or valuation disappointments in that process could complicate matters further.
Debt Pressures and Fundraising Alternatives
Looming over SoftBank is a $40 billion bridge financing tied to its OpenAI investments, which must be repaid by March 2027. The company has indicated it plans to address this through asset sales and other financing measures. Beyond the margin loan, SoftBank has several potential avenues, including issuing additional bonds or borrowing against other listed holdings such as Arm Holdings and Intel, both of which have seen explosive gains this year (up 197% and 192% respectively amid the AI boom).
Despite Wednesday’s decline, SoftBank’s own stock has risen about 45.5% year-to-date, recently overtaking Toyota as Japan’s most valuable company by market capitalization. The company reported a sharp jump in quarterly profit last month, largely driven by valuation gains on its OpenAI stake. Credit markets have also shown improving sentiment, with credit-default swaps narrowing by about 61 basis points to 307 from a recent peak above 367 on May 20.
SoftBank has been aggressively expanding its AI ambitions. Late last month, it announced plans to invest up to €75 billion ($86.6 billion) to build AI data center capacity in France, positioning the country as a potential European hub. This fits into a broader strategy of leveraging its Vision Fund and direct stakes to become a dominant player across the AI value chain.
Yet the heavy concentration in OpenAI has raised questions among some investors about diversification and risk management. The stalled margin loan talks reflect the practical difficulties of monetizing even high-profile stakes in private companies, particularly when lenders demand clarity on valuation, liquidity, and exit paths.
The broader market debate around AI valuations has intensified in recent months. Breakthroughs by competitors like Anthropic have prompted some to question whether OpenAI’s lead is as durable as previously assumed, potentially complicating financing efforts tied to the stake.
For SoftBank, the current pause is not necessarily fatal. The company retains flexibility and multiple levers to manage its liabilities. A successful OpenAI IPO later this year would significantly ease pressure and validate SoftBank’s vision.
In the meantime, analysts expect management to balance its aggressive AI expansion with prudent capital management. But that is a delicate act for a conglomerate whose fortunes have long been tied to bold, high-conviction technology investments.