SoftBank plans to borrow $5 billion, using its ARM shares as collateral, to invest in OpenAI.

SoftBank plans to borrow $5 billion, using its ARM shares as collateral, to invest in OpenAI.

Media reports citing sources say that SoftBank Group is in deep negotiations with several global banks, planning to use part of its shares in chip design giant ARM as collateral to seek a new $5 billion loan, in order to raise “ammunition” for increased investment in OpenAI this year.

SoftBank's confidence in this large-scale financing largely stems from ARM's strong performance in the capital market this year. So far this year, ARM's share price has risen by more than 20%.

ARM becomes a "cash machine"

Turning ARM into a financial instrument has become SoftBank’s key model to fuel its AI ambitions.

Prior to this new $5 billion loan, SoftBank had already obtained a total of $13.5 billion in margin loans through ARM shares (as of March 2025, with $5 billion yet to be used). The new loan will bring this number to $18.5 billion.

As early as before ARM's IPO in 2023, SoftBank had already secured about $8 billion in funds through similar means. This includedJPMorgan Chase,Barclays,BNP Paribas,Goldman Sachsand a total of 11 banks that provided the loans by linking the Arm IPO authorization with the lending.

Additionally, earlier this year, the group raised a $15 billion one-year loan to support its AI investments in the United States.

Masayoshi Son’s “AI Investment Empire”

Masayoshi Son’s appetite goes far beyond this—he is building a massive investment empire around AI technology. His plans include:

  • Heavy investment in OpenAI: A pledge to invest up to $30 billion in total.
  • Acquiring core technology: Spending $5.4 billion to acquire the robotics division of ABB Group.
  • Building foundational computing power: Partnering with OpenAI and Oracle Corp. to promote the “Stargate” project, with total investment possibly reaching $500 billion, aiming to build data centers across the United States.
  • Investing in advanced manufacturing: Exploring the establishment of a large-scale manufacturing center in the U.S. to produce AI industrial robots.

SoftBank’s aggressive strategy is a reflection of the unprecedented influx of capital into the AI sector by global tech giants and investors. According to JPMorgan estimates, the scale of AI-related debt has surged to $1.2 trillion, making it the largest component of the investment-grade credit market.

Bloomberg Industry Research analysts also point out that, considering SoftBank’s potential acquisition of Ampere and a series of other transactions, its total funding needs could exceed $30 billion, which may require further asset sales and asset-backed financing in the future.

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