Topic
How the capital behind AI model developers and their infrastructure is raised, structured and repaid, including equity rounds, bridge loans and bond issuance.
SoftBank sold a record $11 billion of junk bonds at yields up to 9.75%, Reuters reported. Its 2034 bond pays 4.55 points over Alphabet's 2033 issue, a premium Reuters ties to SoftBank's own risk and concentration.
Reality
SoftBank's Masayoshi Son is seeking up to $100 billion from Gulf investors for a new AI acquisition fund, the Financial Times reported. Outside money would pay for the next deals, while SoftBank's own balance sheet still carries the debt it took on to buy into OpenAI.
Perspective Coverage
7 publishersReality
Asian shares opened cautiously on Monday, with Brent down 1.1% at $103.50 a barrel, ahead of major US bank earnings on Tuesday. US inflation data due this week may weigh on tech valuations as much as the results do.
Reality
Masayoshi Son, whose SoftBank is projected to commit $65 billion to OpenAI, is now voicing concern about AI safety risks, according to Bloomberg. Holders now have to judge whether the warning changes the money, since the stock has so far traded on what the labs say.
Reality
Ten billion dollars of notes plus a billion in euros price around September 24 to fund a commitment approaching $65bn. The 13% stake SoftBank is targeting implies a valuation well below the $730bn cited.
Perspective Coverage
7 publishersReality
The $10bn SoftBank owes OpenAI on 1 October is the exact size of the dollar leg of the bond it prices on 24 September. Yields on its 2031 paper have moved from 6.7% in January to about 8.2% in September.
Reality