SoftBank Raises $2.9 Billion Bonds To Fund AI Expansion

SoftBank Group Corp. is aggressively raising capital through international bond markets to fund its significant investments in artificial intelligence, particularly its expanding partnership with OpenAI. The company recently issued approximately $2.9 billion in subordinated hybrid bonds, including $2 billion in dollar-denominated tranches and €750 million in euro-denominated bonds, with yields of 8.25% and 6.5%, respectively, despite maintaining a junk credit rating. SoftBank's CEO Masayoshi Son has pledged up to $500 billion over 14 years for the 'Stargate' AI initiative, with plans to invest $30 billion in OpenAI by the end of the year. This fundraising effort is part of a broader trend among Japanese companies issuing more than $100 billion in foreign debt amid favorable market conditions and higher yields. SoftBank has raised at least $24 billion in loans and bonds globally in 2025, alongside substantial capital raised in its domestic market, positioning it as one of the largest issuers in Japan this year. The company's AI investments have contributed to a recent profit turnaround and include plans to integrate AI with robotics, exemplified by its acquisition of ABB's robotics business.