SoftBank Seeks $100B From Gulf as AI Debt Mounts

SoftBank is seeking up to $100 billion from Gulf investors to fund its AI ambitions, marking a new phase in its debt-driven strategy.

SoftBank, already heavily indebted, is turning to Gulf sovereign wealth funds to finance its AI ventures. The company has exhausted traditional financing options, including bridge loans, margin loans, and retail bonds, and is now looking to sovereign investors for additional capital. This move comes as OpenAI's financial disclosures have raised concerns about the sustainability of the AI industry's funding model. The Gulf's involvement is significant, with Abu Dhabi's MGX and other entities having previously supported OpenAI's fundraising efforts. The latest round of talks with UAE officials highlights the growing reliance on Middle Eastern capital to sustain the AI boom.