News On Japan

SoftBank Expands AI Investments With 1.76 Trillion Yen Bond Issue

TOKYO - SoftBank Group announced on September 24 that it will issue approximately 1.76 trillion yen worth of foreign currency-denominated bonds, the largest simultaneous bond offering in its history, to finance a further $10 billion investment in OpenAI as founder Masayoshi Son accelerates his strategy of building a global business spanning artificial intelligence, semiconductors and data centers.

The offering, aimed at overseas institutional investors, consists of $10 billion in U.S. dollar-denominated bonds and 1 billion euros in euro-denominated bonds. The proceeds will primarily fund the third and final installment of a $30 billion additional investment in OpenAI announced in February 2026, with payment scheduled for October 1.

The financing marks another major step in SoftBank's transformation from a telecommunications and internet investment company into one of the world's largest investors in AI. Son has spent the past decade assembling a portfolio of businesses covering the technology needed to develop, operate and commercialize increasingly sophisticated AI systems.

An early milestone came in 2016, when SoftBank acquired British semiconductor designer Arm for approximately 3.3 trillion yen. Although Arm was then best known for designing processors used in smartphones, Son viewed its energy-efficient chip technology as a foundation for the next generation of computing, including artificial intelligence, connected devices and cloud infrastructure.

SoftBank expanded its technology investments in 2017 with the launch of its first Vision Fund, which secured more than $93 billion in initial commitments. The fund invested heavily in technology companies across industries including transportation, robotics, artificial intelligence and financial services, giving SoftBank exposure to businesses seeking to transform established markets through digital technology.

The company subsequently established Vision Fund 2, increasing its focus on emerging technologies and AI-related businesses. Its portfolio has included companies developing enterprise software, machine learning applications and the infrastructure needed to support increasingly powerful AI systems.

SoftBank began investing directly in OpenAI in September 2024, marking a major shift toward generative AI. Its investments subsequently expanded as the company behind ChatGPT sought additional capital to develop more advanced models and build the computing infrastructure required to operate them.

The investment strategy accelerated in 2025, when SoftBank committed to a funding arrangement of up to $40 billion for OpenAI, with part of the investment allocated to outside investors. By the end of December 2025, SoftBank had completed $30 billion in investments under the arrangement, bringing its ownership of OpenAI to approximately 11%.

SoftBank's AI ambitions have extended beyond OpenAI. In July 2024, it acquired British AI chip developer Graphcore, strengthening its semiconductor capabilities alongside Arm. It also announced a $6.5 billion acquisition of U.S. chip designer Ampere Computing in March 2025, bringing additional expertise in processors designed for cloud computing and AI workloads.

The company has sought to bring these semiconductor businesses together as part of a broader AI computing strategy, positioning Arm, Graphcore and Ampere to supply technologies for the rapidly expanding market for AI processing.

Another major initiative emerged in January 2025, when SoftBank joined OpenAI, Oracle and investment firm MGX in announcing the Stargate Project, an ambitious plan to invest up to $500 billion over four years in AI infrastructure in the United States. Under the arrangement, SoftBank assumed financial responsibility while OpenAI took responsibility for operations, with Son serving as chairman.

The partnership also extended to Japan, where SoftBank and OpenAI announced plans in February 2025 to develop Cristal intelligence, an enterprise AI platform intended to help companies integrate advanced AI into their operations.

SoftBank deepened its commitment to OpenAI in February 2026, announcing a further $30 billion investment divided into three installments of $10 billion each. The first two payments were made in April and July, with the final installment scheduled for October 1. Completion of the investment is expected to bring SoftBank's cumulative investment in OpenAI to approximately $64.6 billion, representing an ownership stake of around 13%.

To finance the expansion, SoftBank arranged a $40 billion bridge loan facility in March 2026. The latest bond issuance will provide funding for the remaining OpenAI payment while allowing the company to cancel $10 billion in unused borrowing capacity under the facility.

The scale of the financing highlights the growing importance of OpenAI to SoftBank's investment portfolio, alongside its semiconductor holdings and expanding AI infrastructure businesses. It also increases the company's financial exposure to the commercial success of AI technology as Son continues to commit substantial resources to the sector.

Source: テレ東BIZ

News On Japan
POPULAR NEWS

Typhoon No. 30 is located as of 7:00 a.m. on October 16 over ocean waters far south of the Japanese archipelago and is expected to gain strength as it moves westward, potentially impacting Japan starting late next week.

Burger King Japan has announced that approximately 11.18 million records containing personal information of its official app members were leaked following unauthorized access to its systems between October 2 and October 7.

Japan's first Disney cruise ship will be named "Disney Imagination," with Oriental Land and its partners planning to launch the service in spring 2029, offering a new Disney-themed travel experience departing from Tokyo.

Tokyo's 23 wards have decided to establish a new small-scale public crematorium to address rising fees at privately operated facilities and growing concerns that cremation capacity could become insufficient around 2040 as the city's aging population drives up the number of deaths.

Japan is facing a growing wave of cyberattacks as advances in artificial intelligence remove the language barrier that once made Japanese companies difficult targets for overseas hackers, with more than 68 million personal records potentially exposed in a series of security incidents over the past two weeks.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks suffered one of their steepest declines on October 15, with the Nikkei 225 plunging 3,318 points, or 4.90%, to close at 64,426, its third-largest point decline on record, as a global selloff in artificial intelligence and semiconductor shares intensified over concerns about rising U.S. interest rates and the financial sustainability of debt-funded AI investment.

Panasonic has announced a recall of approximately 640,000 drum-type washer-dryers after identifying a defect in their automatic detergent dispensing tanks that could cause electrical wiring to deteriorate and potentially catch fire.

Tokyo stocks edged lower on October 14, with the Nikkei 225 closing at 67,744, down 33 points, as an early rebound in semiconductor and artificial intelligence-related shares faded late in the session before the release of U.S. inflation data.

Japanese family restaurant chain Saizeriya has announced its first major price increase since going public in 1998, raising menu prices by an average of 6% from October 29 as soaring ingredient and energy costs force the company to abandon its longstanding policy of keeping prices unchanged.

Japan is expected to fall from fourth to sixth place in the global economic rankings in 2027, overtaken by India and the United Kingdom, according to the latest economic outlook from the International Monetary Fund (IMF), reflecting sluggish domestic growth and the continued weakness of the yen.

East Japan Railway (JR East) is preparing to enter Japan's fiercely competitive mobile payment market with the launch of teppay on October 20, introducing a new QR code payment service through its Mobile Suica platform and potentially tapping into a customer base of 45 million Suica users.

Japan's Fair Trade Commission plans to issue cease-and-desist orders against six construction companies, including firms affiliated with Japan Railways, over repeated bid-rigging in maintenance contracts for Tokyo's Toei subway network and other railway lines, with five companies facing surcharges totaling approximately 500 million yen.

Japan's domestic corporate goods price index rose 6.8% in September from a year earlier, slowing to below 7% for the first time in four months but remaining at a high level as soaring crude oil prices and growing demand for AI-related materials continued to push up costs, according to data released by the Bank of Japan on October 13.