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Kaushik Tiwari @kaushikktiwari on x 2458 followers
Created: 2025-07-24 17:41:48 UTC
SoftBank pledged up to $40B for OpenAI, $10B now, $30B later.
But that extra $30B? Hangs by a thread.
The issue:
Most of SoftBank’s funding is debt-driven, not cash-in-hand. They’ve already borrowed heavily for the first $10B via banks like Mizuho. To fund the rest, they'd need to take on way more debt, but that’s risky. Credit agencies (like S&P) are warning: another big loan = downgrade coming.
The Catch:
If SoftBank’s credit rating drops, they’ll struggle to raise more money without offloading assets. The $30B second tranche also depends on OpenAI restructuring its corporate structure by year-end. If that doesn’t happen, SoftBank could reduce its total investment to just $20B.
What's next:
The hyped $500B AI infra project, Stargate, is mostly stalled, only a small Ohio site might happen this year. OpenAI is now quietly reopening the round to other investors, trying not to rely on SoftBank alone.
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Related Topics rating agency agencies debt $30b $10b open ai $40b $9434t