- SoftBank Group is close to securing a $5 billion margin loan using Arm Holdings shares as collateral to invest further in OpenAI and the Stargate project.
- The total margin loans against Arm shares would reach $18.5 billion, with $13.5 billion previously raised and $5 billion still undrawn.
- Arm Holdings stock has risen 38.3% this year due to its connections to Artificial Intelligence, while SoftBank’s U.S. OTC stock has surged 160%.
- SoftBank leads a $40 billion investment round in OpenAI, with $10 billion already invested and an additional $30 billion expected by December.
- The company is involved in several large acquisitions, including deals for Ampere ($6.5 billion) and ABB’s Robotics unit ($5.4 billion), and aims to be a leader in artificial super intelligence.
SoftBank Group Corp., based in Tokyo and led by Masayoshi Son, is finalizing an agreement for a $5 billion margin loan. The loan, backed by shares of its chip design subsidiary Arm Holdings, is intended to support further investment in the U.S. artificial intelligence firm OpenAI and the Stargate project.
According to a Bloomberg report, this transaction would raise the total margin loans secured by Arm shares to $18.5 billion. Of this, $13.5 billion was raised previously, with $5 billion from that amount still available for future use.
Shares of Arm Holdings have increased 38.3% year-to-date, largely attributed to the company’s role in AI-related technologies. Meanwhile, SoftBank’s U.S. over-the-counter stock has soared by 160% during the same period. Online investor sentiment for Arm is currently described as “extremely bullish,” while views on SoftBank remain “bearish.”
SoftBank manages the Vision Funds, a series of venture capital funds focusing on technology investments. The second Vision Fund, launched in 2019, targets companies utilizing artificial intelligence and other advanced technologies. During the company’s annual meeting in July, Son stated: “I’m all in,” in reference to SoftBank’s ambitions to become the top platform for artificial super intelligence.
The firm is a lead partner with OpenAI in the Stargate AI initiative, which began following former President Donald Trump‘s inauguration. SoftBank is spearheading a $40 billion funding effort for OpenAI, with $10 billion invested so far and the remaining $30 billion expected by the end of the year, according to CNBC.
Additionally, SoftBank is pursuing a $6.5 billion acquisition of server chipmaker Ampere and has announced a $5.4 billion purchase agreement for Swedish industrial company ABB’s Robotics unit. The Ampere deal is awaiting regulatory approval.
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