# SoftBank borrows $11.1B to pay OpenAI’s $10B tranche

Digest AI · Business & Funding · published 2026-10-12T17:01:00Z

Canonical: https://digestai.news/story/softbank-borrows-11-1b-to-pay-openais-10b-tranche

## Summary

**SoftBank** raised a record $11.1 billion in junk bonds on September 24, 2026—the largest high-yield corporate bond issuance ever—to complete a $10 billion follow-on investment in **OpenAI**. The deal pushed **SoftBank’s** total stake in the AI lab to $64.6 billion, or about 13% of OpenAI’s valuation, according to the company’s own figures. The bond terms reflect high risk: coupons ranged from 8.625% to 9.75%, the highest rates **SoftBank** has ever paid, with all tranches rated BB+ (one notch below investment grade). Demand exceeded supply fourfold in some cases, signaling investor appetite for AI exposure despite the risk premium demanded by lenders.

The move follows **SoftBank’s** recent acquisitions of **ABB’s** robotics business for $5.4 billion and **DigitalBridge** for $3.1 billion. **CEO Masayoshi Son** now faces higher debt obligations—$9.75% annually on the longest-term notes—regardless of OpenAI’s performance. **SoftBank’s** stock has fallen 38% since June 2026, and its credit default swap spreads widened 24% over the same period. The bond sale underscores **Son’s** aggressive AI bets, positioning **SoftBank** alongside **Amazon** and **Nvidia** as a top backer in the sector.

## Key points

- SoftBank raised $11.1B in junk bonds on September 24, 2026—the largest high-yield issuance ever—primarily to fund OpenAI’s $10B tranche
- Total investment in OpenAI now stands at $64.6B, giving SoftBank a ~13% stake, with bond coupons ranging from 8.625% to 9.75%
- SoftBank’s stock dropped 38% since June 2026, and its credit risk surged 24% amid recent acquisitions worth $8.5B total

## Why it matters

The deal cements **SoftBank’s** status as AI’s top private investor, but its record debt load and high interest rates signal market skepticism about AI’s near-term returns. Competitors like **Nvidia** and **Amazon** may now face pressure to justify their own AI spending.

## Sources

1. [SoftBank’s record $11.1 billion junk bond sale raises the stakes on Son’s AI bets](https://cryptobriefing.com/softbank-record-junk-bond-openai) (cryptobriefing.com, 2026-10-12)

Part of the developing story: [SoftBank Leverages Debt For OpenAI](https://digestai.news/thread/opinion-softbank-s-ai-strategy-relies-on-11b-debt-and-openai) (4 stories)

## Cite

Digest AI, "SoftBank borrows $11.1B to pay OpenAI’s $10B tranche", 12 October 2026, https://digestai.news/story/softbank-borrows-11-1b-to-pay-openais-10b-tranche

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