SoftBank Group has successfully raised $2.9 billion through a hybrid bond issuance that underscores founder Masayoshi Son’s bold, long-term vision for artificial intelligence. The transaction represents another decisive step in the company’s global capital-raising campaign, funding its deepening involvement in AI ventures such as OpenAI and the sprawling Stargate infrastructure project. Despite its sub-investment-grade credit rating, investor demand for the bonds was remarkably strong, reaffirming confidence in SoftBank’s strategy to position itself at the core of the next technological revolution.

Robust Investor Demand Amid Junk Rating

SoftBank’s October 23 hybrid bond sale drew an enthusiastic response from institutional investors across Europe and Asia, excluding Japan and the United States. The offering comprised three separate tranches—two U.S. dollar-denominated issues totaling $2 billion and one euro-denominated tranche worth €750 million (approximately $871 million).

The pricing structure reflected investors’ willingness to assume long-term exposure to SoftBank’s evolving capital story. The 40-year dollar tranche offered a coupon of 8.25%, while the 35.5-year dollar bonds carried a 7.625% yield. The 37-year euro bonds, meanwhile, were priced at 6.5%, striking a balance between yield appeal and credit risk. Rating agency Standard & Poor’s graded the notes at BB+, categorizing them within “junk” territory. Yet that classification did little to deter demand—underscoring the market’s conviction that SoftBank’s AI strategy has the potential for extraordinary long-term value creation.

Market sources reported significant oversubscription. For a company often scrutinized for its leverage, this outcome reflects persistent faith in Masayoshi Son’s AI-driven investment thesis. Moreover, the securities’ hybrid structure earned 50% equity treatment from major agencies, helping enhance SoftBank’s balance sheet flexibility without excessively increasing debt leverage.

Fueling SoftBank’s Global AI Ambitions

The October offering marks SoftBank’s second major overseas bond deal in 2025, following a $4.2 billion bond issuance in July that drew an astonishing $17 billion in investor interest. Cumulatively, the Japanese investment powerhouse has now raised approximately $24 billion through loans and bond sales this year—its most aggressive fundraising effort in recent memory.

Proceeds from the latest hybrid issuance will power SoftBank’s strategic pivot toward artificial intelligence. The company is pursuing a $30 billion equity stake in OpenAI, which it expects to finalize by the end of 2025. This cornerstone investment represents Son’s conviction that AI—not telecoms or e-commerce—will define the next era of wealth creation.

SoftBank is also channeling funds into the $500 billion Stargate Project, an ambitious venture designed to construct state-of-the-art AI data centers across the United States. The initiative, unveiled in January 2025 by President Donald Trump, is a cooperative effort among OpenAI, Oracle, MGX, and SoftBank. The first data center in Abilene, Texas, is already operational, with five additional sites planned nationwide. This endeavor situates SoftBank at the intersection of global AI infrastructure and American industrial expansion—an alignment that may reshape the corporate and geopolitical landscape of the coming decade.

Strategic Implications for AI Sector and Market Conditions for Venture Funding

The success of the hybrid bond issuance offers several takeaways for investors and macro watchers alike.

Resilient Market Confidence: Despite concerns surrounding credit risk, continued investor appetite for SoftBank debt reveals the enduring allure of its transformational AI agenda. Institutions appear comfortable trading short-term risk for long-term technological exposure.

Enhanced Balance Sheet Structure: Hybrid instruments grant quasi-equity recognition, allowing SoftBank to reduce net debt pressure even as it raises fresh capital. This will enable further scaling of its AI ecosystem investments without destabilizing credit metrics.

Broader Policy Context: President Trump’s backing of the Stargate infrastructure project underscores the U.S. government’s strategic prioritization of AI sovereignty. SoftBank’s close participation signals Japan’s expanding role in the new industrial alliance that merges computing power, data infrastructure, and private capital.

For global investors, the transaction serves as a clear signal: AI is no longer just a software story; it’s an infrastructure and capital markets story as well.

A Calculated Long-Term Gamble

Masayoshi Son’s renewed fundraising offensive comes amid what he calls the “AI revolution’s decisive decade.” By leveraging hybrid capital structures, SoftBank mitigates dilution risk while maintaining strategic liquidity for large-scale projects. The approach mirrors Son’s historical playbook—bet aggressively during transitional tech epochs, scale early, and hold through volatility.

While the company’s leveraged model has drawn skepticism in previous cycles, particularly during downturns in its Vision Fund portfolio, SoftBank’s latest financing moves suggest a refined balance between ambition and prudence. The long maturities of these bonds—stretching up to 40 years—signal a deliberate alignment with multi-decade horizons in infrastructure-linked AI growth.

If successful, this capital infusion could place SoftBank at the heart of a trillion-dollar transformation encompassing data, algorithms, and industrial-scale computing facilities. For Son, it represents not just another investment wave—but the culmination of a vision rooted in his belief that AI is the defining asset class of the 21st century.