SoftBank Commits $64.6 Billion to OpenAI, Credit Concerns Rise as Exposure Expands

PANews, September 16 - SoftBank Group's credit default swaps are hovering near three-year highs as traders assess the potential impact of its financing plans for OpenAI, one of SoftBank's largest bets. According to data provider CMA, five-year CDS quotes stand at approximately 383.2 basis points, close to the highest level since 2023. SoftBank has committed to investing $64.6 billion in OpenAI. The ChatGPT developer is in early-stage talks with investors for a new funding round ahead of its initial public offering, at a valuation exceeding $1.2 trillion. OpenAI CEO Sam Altman has previously stated that the company's long-awaited IPO remains in the works but will not occur this year.