The son of Softbank CEO Masayoshi is making another big move with AI. According to information reports, the Japanese tech giant is in talks to secure $16 billion in loans to promote artificial intelligence ambitions. Borrowing may not stop. Softbank is considering taking another $8 billion in early 2026.
The company, which reported a loss of $2.4 billion in the third quarter, is actively expanding its AI investment. Reuters previously reported that SoftBank is discussing it to put up to $25 billion in Openai, the company behind ChatGpt. This adds to the $15 billion it has already committed to Stargate, an initiative that includes Oracle, Openai and SoftBank.
Information previously reported that SoftBank is attempting to invest a total of $40 billion in Stargate and Openai, with plans to borrow up to $18.5 billion using up to $18.5 billion as collateral.
“Big Tech Investor is in discussions to borrow $16 billion in its latest debt transaction to fund AI.
Project Stargate, a joint venture between Oracle, Openai and SoftBank, aims to put up to $500 billion into AI development to drive the US ahead of China and other global competitors. The project was featured in the White House in January and was attended by former President Donald Trump, his son, Open CEO Sam Altman, and Oracle Chairman Larry Ellison.
Softbank’s latest borrowing plan demonstrates a solid commitment to AI, but also raises questions about sustainability. Doubling your AI after posting a significant loss can be rewarded in a big way or add to your financial burden. Investors are looking closely.
Softbank’s Vision Fund segment recorded a loss of 35.275 billion yen in the quarter ending December 31st, wiping out profits from the previous two quarters. Taking into account management costs and currency fluctuations, the total loss in the Vision Fund segment reached 399.3 billion yen.
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