SoftBank's OpenAI Ambition
SoftBank Group, a prominent investor, has recently issued $2 billion in high-yielding dollar bonds to support its equity investment in OpenAI.
As of June, the company held more than twice as many bonds as bank loans, indicating a significant shift in its investment strategy.
- The bonds, due in 2065, have an initial price guidance of 8.5% to 8.625%.
- In comparison, the straight 2035 bond is trading at 6.8%.
Founder Masayoshi Son's latest offerings will come at a cost, as the company must offer extra yields to entice investors.
SoftBank is working to secure its $30 billion investment in OpenAI by year-end, having already invested $7.5 billion.
Author's summary: SoftBank issues bonds to fund OpenAI investment.