SoftBank Cuts OpenAI Loan Plan to $6 Billion

SoftBank Group Corp. has scaled back plans for a $10 billion margin loan backed by its stake in OpenAI to as little as $6 billion after lenders expressed concerns over the valuation of the unlisted artificial intelligence company.

The Japanese conglomerate initially sought the financing, structured as a two-year margin loan with a one-year extension option, to support its artificial intelligence investments without selling OpenAI shares. Discussions with banks, private credit funds and other creditors began as early as mid-March, people familiar with the matter said. In recent weeks, SoftBank and its bankers pitched a reduced target of around $6 billion, representing a roughly 40 percent cut from the original amount. Negotiations continue, and the final size could still change.

Lenders hesitated due to challenges in assigning a reliable value to OpenAI shares as collateral. The company, valued at $852 billion in a March funding round, has faced questions about its growth after reportedly missing some internal sales and weekly active user targets earlier this year. OpenAI Chief Financial Officer Sarah Friar countered concerns, stating the company is meeting objectives and sees a...