Softbank Group, known for making some of the world’s boldest technology investments, is reportedly scaling back its plans for a massive loan backed by its stake in OpenAI.
According to a Bloomberg report, the Japanese investment giant has reduced the target size of the proposed margin loan from $10 billion to potentially as low as $6 billion after some creditors expressed concerns about the deal’s risks.
The development signals that while artificial intelligence remains one of the hottest sectors globally, investors and lenders are still wary about placing enormous bets on private AI firms whose valuations are difficult to measure.
Credits: Bloomberg
Why Lenders Are Nervous
At the center of the issue is OpenAI’s valuation.
Unlike publicly listed companies, OpenAI does not trade on stock exchanges, making it harder for lenders to determine the true value of SoftBank’s stake. That uncertainty appears to have made some creditors uncomfortable with the original financing proposal.
A margin loan allows an investor to borrow money by using investments as collateral. In this case, SoftBank planned to use its OpenAI stake to secure the borrowing. But if the value of that stake fluctuates or becomes difficult to assess, lenders face greater risk.
For traditional banks and institutional investors, lending billions against an unlisted AI company is far more complicated than financing shares in publicly traded tech giants.
The hesitation also reflects broader concerns surrounding the AI boom. While enthusiasm around generative AI continues to surge, many investors are questioning whether sky-high valuations across the sector are sustainable in the long run.
SoftBank’s Aggressive AI Push
Despite the reported downsizing, the move still underscores SoftBank’s deep commitment to artificial intelligence.
The conglomerate, led by billionaire founder Masayoshi Son, has rapidly intensified its AI investments over the past year. SoftBank first invested in OpenAI in September 2024 and has since positioned itself as one of the company’s major strategic allies.
In January 2025, SoftBank and OpenAI joined forces on Stargate, a massive U.S.-based AI infrastructure initiative aimed at building advanced computing capacity for the next generation of artificial intelligence systems.
The partnership highlighted SoftBank’s ambition to become one of the most influential players in the global AI ecosystem — not just as an investor, but also as a builder of critical infrastructure.
The $40 Billion War Chest
SoftBank’s financing strategy goes far beyond this single loan.
In March, the company announced that it had secured a staggering $40 billion bridge loan to support investments in OpenAI and fund broader corporate activities. The scale of that borrowing demonstrated just how aggressively the company is positioning itself for the AI era.
However, the latest report suggests that even SoftBank may need to balance ambition with financial caution.
Large debt-backed investments can become risky when tied to volatile or difficult-to-value assets. Some analysts believe lenders are now demanding stricter terms as concerns rise over overheating in parts of the AI market.
The proposed margin loan was reportedly designed with a two-year term and an option to extend it by another year. Discussions are still ongoing, meaning the final amount and structure could still change.
Credits:
AI Mania Meets Financial Discipline
The situation reflects a larger shift happening across the global technology industry.
Over the past two years, artificial intelligence has attracted unprecedented levels of capital, with investors racing to back companies building advanced AI models, chips, cloud infrastructure, and automation tools. But as valuations climb higher, financial institutions are beginning to scrutinize deals more carefully.
SoftBank itself has experienced the highs and lows of aggressive investing before. Through its Vision Fund, the company backed several high-growth startups that later struggled with profitability and valuation collapses.
Now, as AI becomes the next major frontier, lenders appear determined not to repeat past mistakes.
For SoftBank, reducing the size of the loan may ultimately be a practical move rather than a setback. The company still retains massive financial firepower and remains one of the strongest believers in AI’s long-term future.
But the episode serves as a reminder that even in the middle of the global AI frenzy, Wall Street and major lenders still want one thing above all else — clarity on risk.
