SoftBank's $11 billion junk bond supports Masayoshi Son's AI push
Business
SoftBank last month launched an $11 billion junk bond sale, the biggest in its history, with a hefty 9.75% interest rate for bonds due in 2034.
This bold move is all about fueling CEO Son's push into artificial intelligence, including investments related to OpenAI, even as some worry the AI market is getting overheated.
SoftBank investors wary despite AI bets
The high interest rate shows investors are wary of SoftBank's aggressive strategy, especially after past ups and downs like Alibaba's success and WeWork's troubles.
Despite shares have fallen 38% since then, SoftBank is sticking to its AI ambitions, hoping these risky bets will pay off both financially and strategically, even as corporate borrowing has surged this year.