SoftBank Plunges 1 Trillion Yen into Record-Breaking AI Bond Issue

SoftBank is planning to issue a record-breaking 1 trillion yen in retail bonds to finance its aggressive AI strategy. The move marks a significant shift for the company, which has traditionally relied on selling shares in companies like Nvidia to raise capital.

The decision to issue high-yield bonds aimed at individual investors allows SoftBank to reduce its reliance on bank risk exposure and tap into Japanese household savings.

Masayoshi Son's pivot towards AI, with a focus on OpenAI as the core investment, has led to cumulative investments exceeding previous single targets. The company is now using continuous retail bonds combined with bridge loans to convert Japanese household savings into AI venture capital.

This approach amplifies exposure and relies heavily on high leverage compared to other tech giants expanding AI infrastructure through debt.