SoftBank revives talks for $10 billion loan backed by OpenAI stake, sources say

• The lending consortium includes major financial institutions Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group
• Earlier loan discussions had failed because lenders were concerned about the difficulty of accurately valuing private companies like OpenAI
• SoftBank's corporate guarantee gives banks recourse to the Japanese technology investor if the OpenAI stake collateral becomes inadequate for repayment

Summary:

SoftBank Group has revived negotiations for a $10 billion loan backed by its stake in OpenAI, after initial discussions stalled due to concerns over valuing private companies. The Japanese technology investor is now offering a corporate guarantee to provide lenders additional security if the OpenAI collateral proves insufficient.

The lending consortium is expected to include major financial institutions Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group. By providing a corporate guarantee, SoftBank gives banks direct recourse to the company for loan repayment, addressing earlier concerns about the difficulty of establishing accurate valuations for privately-held firms like OpenAI.

This financing structure represents a significant development in SoftBank's ability to leverage its AI investments for capital. The $10 billion loan would be secured by SoftBank's equity position in OpenAI, one of the leading artificial intelligence companies globally. The deal structure reflects both the growing value of AI investments and the complexities lenders face when accepting private company stakes as collateral.

Neither SoftBank nor OpenAI responded to requests for comment on the matter. Goldman Sachs, JPMorgan, and Mizuho all declined to comment when approached.

The loan negotiations come as SoftBank, led by Chairman and CEO Masayoshi Son, continues to position itself heavily in the artificial intelligence sector. The successful completion of this loan would provide SoftBank with substantial liquidity while maintaining its strategic stake in OpenAI, demonstrating innovative approaches to financing in the rapidly evolving AI investment landscape.