BofA extends first $520 million loan to OpenAI before IPO, source says

• BofA has captured 60% of AI-related fundraising across investment-grade debt, leveraged finance, and equity capital markets since 2025, totaling nearly $500 billion
• OpenAI is targeting a valuation exceeding $1 trillion in its upcoming U.S. IPO, which could become one of the largest public offerings
• The bank is seeking advisory roles on both OpenAI and Anthropic IPOs, following its role in a previous $2 trillion valuation deal

Summary: BofA Extends $520 Million Loan to OpenAI Ahead of Planned IPO

Key Transaction Details:

Bank of America has extended a $520 million credit line to OpenAI, marking the bank's first loan to the artificial intelligence company as it prepares for an initial public offering. This lending relationship positions BofA as one of OpenAI's largest creditors.

Strategic Positioning:

The loan strengthens BofA's position as a leader in AI-related capital markets financing. According to internal data, the bank has raised nearly $500 billion in capital for AI companies since 2025, representing 60% of such fundraising across investment-grade debt, leveraged finance, and equity capital markets.

IPO Prospects:

OpenAI filed for a U.S. IPO last month and is targeting a valuation exceeding $1 trillion, which could position it among the largest public offerings in history. BofA is also pursuing advisory roles for planned IPOs of both OpenAI and competitor Anthropic. The bank previously participated in a major technology IPO at a $2 trillion valuation.

Market Implications:

Mega IPOs typically generate hundreds of millions in fees for Wall Street banks and create opportunities for years of subsequent business relationships. OpenAI, founded as a research nonprofit in 2015, established a for-profit arm in 2019 to fund the substantial costs of AI system development.

Context:

OpenAI, maker of ChatGPT, remains a key player in the competitive AI sector. The substantial credit line and IPO preparations underscore the significant capital requirements and market interest in leading artificial intelligence companies.