Apollo Global Management is in talks with SoftBank Group to raise a loan to as much as $9 billion, up from $5.4 billion, with the financing secured by holdings inside SoftBank's Vision Fund 2. People familiar with the negotiations, who asked not to be named because the discussions are private, said the size is still being finalized.
Apollo originated a net asset value loan to SoftBank's venture fund in 2021, then added $900 million last year to bring it to $5.4 billion. NAV loans let funds borrow against their portfolio to free up cash. Representatives for both firms declined to comment.
SoftBank now ranks among the world's largest backers of artificial intelligence, drawing fresh attention to how it bankrolls that push. The cost to protect against a SoftBank default climbed this week, with credit default swaps rising to a three year high amid wider worries about AI safety.
SoftBank has been meeting investors in New York this week to gauge interest in a potential overseas junk bond sale that, according to people familiar with the matter, might bring in anywhere from $10 billion to $20 billion. It has also been tapping liquidity against its OpenAI stake. In August, the company secured a $10 billion loan using that holding as collateral from lenders that included Apollo.
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Since it began, Vision Fund 2 has completed over 300 deals and has recently funneled additional money toward OpenAI, the company behind ChatGPT. The Japanese group has pledged $64.6 billion for OpenAI. Chief Executive Officer Sam Altman recently said an IPO remains planned, but it will not happen this year. The target has shifted to 2027 while the company works through safety priorities.
The financing tied to Vision Fund 2 - whose committed capital topped $100 billion as of February - identifies Masayoshi Son and SoftBank itself as the biggest contributors.
Here is the gist: a heavyweight tech investor is stacking funding tools - asset backed loans here, a possible jumbo junk bond there - to keep its AI spending engine running while OpenAI's public listing waits until 2027. If you watch credit markets, a three year high in SoftBank's CDS and a potential multibillion bond sale can ripple into borrowing costs and risk appetite. For everyone else, it is a reminder that headline AI bets ride on real world financing that can sway the overall market mood.
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