SoftBank plans to raise $11 billion in risky bonds to fund an additional stake purchase in OpenAI.

SoftBank plans to borrow more than $11 billion from investors through junk bonds to finance an upcoming payment for its stake in OpenAI, according to documents reviewed by the Financial Times. The offering comprises $10 billion in U.S. dollar-denominated bonds and €1 billion in euro-denominated securities, with terms expected to be set Thursday and payment to OpenAI due in October.

Junk bonds carry significantly higher interest rates than investment-grade debt but also present a substantially higher risk that investors may not recover their principal. This move contrasts with recent market behavior, as most major technology companies have opted for safer, investment-grade bonds in the current environment.

The bond issuance represents a strategic shift in how SoftBank finances its OpenAI commitment. The company had previously secured up to $40 billion in short-term loans for the investment and now seeks to refinance that debt with longer-term securities. This restructuring could temporarily push SoftBank above its stated debt ceiling, though the company appears willing to accept this in exchange for extended repayment terms.

OpenAI's capital requirements underscore the stakes of SoftBank's commitment. The AI company projects it will consume approximately $280 billion in cash by the end of 2030, reflecting the massive infrastructure and compute investments required to sustain its operations and development roadmap. For SoftBank, the stakes extend beyond the stake itself: the company's data center business has factored OpenAI contracts into its forward revenue projections, making the partnership integral to its broader strategic positioning.