SoftBank's $6 billion margin loan backed by OpenAI stake stalls after initial $10 billion target was cut

SoftBank Group's discussions with creditors to raise at least $6 billion through a margin loan backed by its OpenAI stake have stalled, just weeks after the Japanese conglomerate reduced its initial target from $10 billion. SoftBank had secured some $5 billion for the loan before the talks paused.

A margin loan is a type of borrowing secured by an asset (in this case, SoftBank's OpenAI stake). Creditors had previously expressed concerns about valuing an unlisted company like OpenAI; SoftBank had downsized the loan's initial target by 40% after facing hesitation from potential lenders.

SoftBank must repay a $40 billion bridge financing that supported its OpenAI investments by March 2027. The company is considering various fundraising options, including potential bond issuance or borrowing against other listed holdings such as stakes in Arm Holdings and Intel.