SoftBank Raises $42 Billion in Bonds for AI Push, Faces U.S. Antitrust Probe

SoftBank Group, a prominent technology investment conglomerate, has intensified its efforts to secure global debt financing to propel its artificial intelligence (AI) initiatives. On Wednesday, the Japanese company priced a total of 42 billion dollars in U.S. dollar and euro-denominated bonds. The holding firm issued four tranches of 22 billion dollars in junk-rated U.S. dollar bonds and three tranches of 17 billion euros (20 billion dollars) in euro-denominated bonds. The transaction garnered over 173 billion dollars in equivalent investor subscriptions, reflecting robust demand.

This bond issuance is a critical component of SoftBank's expansive AI investment strategy. The billionaire founder has committed up to 5000 billion dollars for the "Star Link" project and announced plans to invest 300 billion dollars in OpenAI earlier this year. However, recent developments indicate that the U.S. Federal Trade Commission has initiated an in-depth antitrust investigation into SoftBank's 65 billion dollars acquisition of a semiconductor design company, underscoring the regulatory hurdles faced by the founder's global expansion plans.

At the annual shareholder meeting in June, the founder pledged to transform SoftBank into a global leader in super AI platforms within a decade. This year, SoftBank has raised over 6000 billion yen (42 billion dollars) through yen-denominated bonds, positioning it as the largest issuer in Japan's corporate bond market.

The chief executive of a prominent asset management firm noted that Japanese investors have significantly increased their exposure to SoftBank's risk, making it logical for the company to explore overseas financing channels in the current environment. The improved investor sentiment and reduced financing costs have driven a surge in U.S. dollar bond issuances this year. SoftBank Group's listed mobile subsidiary completed a 10 billion dollars U.S. dollar bond issuance on Monday, marking its debut in the U.S. investment-grade bond market.