SoftBank is arranging a new $5 billion margin loan to invest in OpenAI and use its shares in Arm Holdings as collateral, reports Bloomberg. The move will enable the company to increase its stake in OpenAI and/or invest in the company's infrastructure, while taking the company's total borrowing against Arm shares to $18.5 billion.
The Japanese investment company is said to be negotiating with several international banks to finalize the deal, which will be collateralized by Arm stock. The company had already tapped $13.5 billion in margin loans from Arm shares by March 2025, with $5 billion still unused at that time, which gives it some flexibility to expand its credit base further.
