Post by Augustine Chiagozie (@pabloexchange)

💰 SoftBank Pledges OpenAI Shares for Loans

SoftBank owns about 13% of OpenAI and has invested roughly $64.6 billion, mostly not its own cash. It sold $6 billion in Nvidia shares to fund the initial stake without debt.

In March, SoftBank took a $40 billion bridge loan at 8%, paying it to OpenAI but due in a year. In April, it borrowed another $6 billion using its OpenAI shares as collateral.

If OpenAI’s IPO delays or valuation drops, SoftBank risks default and heavy losses. The company is uneasy, but Masayoshi Son ignores warnings.

SoftBank faced a similar fate in 2019 with WeWork, losing $10 billion after a failed IPO. This time, the stakes are 15 times higher.

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