SoftBank makes another big AI gamble: starts issuing more than $11 billion in high-yield bonds, betting on OpenAI and AI infrastructure

The Zhitong Finance App learned that the SoftBank Group, a subsidiary of billionaire Sun Zhengyi, has launched what can be called one of the largest corporate junk bonds in history. This Japanese conglomerate is using debt investors to fund its large-scale investment in the field of artificial intelligence. As one of the world's largest AI investors, SoftBank has begun to promote this multi-part deal, and price guidance for the US dollar portion is ongoing. According to a person who requested anonymity due to undisclosed discussions, the group plans to raise the equivalent of more than 11 billion US dollars through this offering, including 10 billion US dollars and 1 billion euros (about 1.1 billion US dollars) of euros.

The offering is the latest in a series of intensive actions by SoftBank in the bond market this year, aimed at funding the nearly $65 billion investment commitment to ChatGPT developer OpenAI and more mergers and acquisitions in this field. These moves have placed the Japanese investment firm at the center of debt-driven artificial intelligence bets, and the future of this technology is currently fascinating the global market, despite rising security concerns in the industry.

SoftBank isn't the only company pouring into the market for financing. According to the latest report from Goldman Sachs Group's credit strategists, the global AI-related bond issuance volume will exceed $575 billion in 2026.

Sun Zhengyi downplayed market concerns about AI infrastructure investment and said earlier this year that he expects AI-related industries to account for 20% of global output by 2040, equivalent to 46 trillion US dollars.

However, the flood of AI financing in global financial markets has made some bond investors uneasy. They fear that if the technology fails to pay back to the companies that have made the biggest investments, rising debt could have consequences for the market.