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Apollo in Talks With SoftBank to Raise Loan to $9B for OpenAI Bet

Apollo Global Management is in talks with SoftBank Group to increase the size of a loan from $5.4 billion to $9 billion, helping the Japanese company expand its bet on AI giant OpenAI. The financing discussions were reported by Bloomberg. The deal would deepen SoftBank’s exposure to OpenAI.

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AI take

The notable element is the financing structure rather than the OpenAI exposure itself: a private credit giant upsizing a loan to a single counterparty concentrates credit risk in an area of the market that has grown quickly. It also shows AI commitments increasingly being funded through large private loans rather than public markets, which shifts who ultimately carries the risk. Whether other private lenders follow this pattern, and how such concentrated exposures are priced, is the open question worth watching.

Generated by AI for reference only.

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