SoftBank is preparing to commit an additional $30 billion to OpenAI, pushing its self-imposed borrowing limits and heightening investor unease over its exposure to artificial intelligence. According to the Financial Times, the Japanese conglomerate may temporarily exceed its target loan-to-value (LTV) ratio of 25 percent, a measure of net debt relative to holdings, as it accelerates investment in AI and related technologies.
Chief financial officer Yoshimitsu Goto acknowledged that the LTV ratio could rise above the 25 percent threshold in the coming months, though he emphasized that the company has strategies—including asset sales, listings, and asset-backed financing—to bring leverage back under control. SoftBank’s LTV has already climbed from 16.5 to 20.6 percent in the quarter ending December, and shares have dropped more than 45 percent since last October amid investor caution over rising AI commitments and intensifying competition from rivals such as Google and Anthropic.
The $30 billion injection represents one phase of SoftBank founder Masayoshi Son’s broader vision to position OpenAI at the center of next-generation artificial intelligence. Son has previously invested over $34 billion for an approximately 11 percent stake in the company and has reoriented SoftBank’s Vision Fund toward AI, while also acquiring semiconductor and robotics companies and expanding data center infrastructure in the US. Despite the $500 billion Stargate data center project with OpenAI and Oracle being scaled back, SoftBank continues to pursue AI-driven growth aggressively.
Analysts note that the group faces challenges in balancing leverage with ambitious investments. David Gibson of MST Financial estimated that around $50 billion in funding, refinancing, and additional OpenAI commitments will be required through 2026, potentially pushing LTV above 25 percent. Credit spreads have widened, and S&P recently revised SoftBank’s outlook to negative, citing rising exposure to unlisted assets. The conglomerate also plans to rely on a potential OpenAI IPO to reduce the proportion of private holdings and lower leverage over time.
Goto emphasized that SoftBank’s more than ¥30 trillion in net assets provides sufficient flexibility to manage debt levels, while bridge loans totaling approximately $40 billion with lenders—including Japanese megabank Mizuho—demonstrate continued market confidence. He highlighted that banks participating in the bridge finance understand SoftBank’s plans and are aligned with its strategy for the OpenAI investments.
Investor sentiment remains mixed. While some view SoftBank’s bold AI commitments as a strategic leap, others see the rising LTV ratio and share price decline as cautionary signals. For many, the management of leverage is now a key lens through which the market evaluates SoftBank’s approach to AI. As the company moves forward with its multi-billion-dollar OpenAI funding schedule in April, July, and October, the balance between ambition and financial discipline will be closely scrutinized by global markets.
