Apollo Global Management Inc. is in discussions with SoftBank Group Corp. to potentially increase a loan facility from $5.4 billion to $9 billion. This financing aims to support SoftBank's strategic investments in the artificial intelligence company OpenAI. The ongoing talks highlight SoftBank's continued focus on AI ventures and its reliance on external funding to bolster these initiatives.
The proposed increase in the loan size indicates a potentially larger commitment from Apollo towards SoftBank's AI ambitions. The financing is reportedly backed by assets within SoftBank's Vision Fund 2. Representatives for both Apollo and SoftBank declined to comment on the private discussions, emphasizing the sensitive nature of the negotiations.
This potential $9 billion loan from Apollo would add to SoftBank's recent financing activities related to OpenAI. Earlier news reports indicate that SoftBank secured an $11.87 billion loan from approximately 20 banks to fund its OpenAI investments. This larger financing package, finalized last week, surpassed an initial target of $10 billion, demonstrating SoftBank's aggressive pursuit of funding for its AI strategy.
The financial moves occur amidst broader efforts by SoftBank to manage its debt and solidify its position in the AI sector. The conglomerate recently announced plans to repay the remaining $25.9 billion balance of a $40 billion loan obtained earlier in the year for OpenAI investments. This repayment, due September 15, 2026, was part of a strategy to refinance with longer-term debt, including a potential bond sale of up to $20 billion. Overall, SoftBank intends to invest close to $65 billion in OpenAI by October, showcasing its significant commitment to the AI firm.
