SoftBank Group's (TYO:9984) plans to raise about $6 billion through a margin loan backed by its stake in OpenAI have stalled, weeks after the Japan-based multinational investment group reduced its fundraising target from $10 billion.
Bloomberg News reported Wednesday, citing people familiar with the matter, that the conglomerate is evaluating alternative financing options and may revive margin-loan talks at a later stage.
During the earlier talks with potential lenders, the group secured about $5 billion in margin loan commitments, and the pause comes amid OpenAI's confidential filing for an initial public offering in the US, according to the report.
Meanwhile, SoftBank's $60 billion commitment to OpenAI is under investor scrutiny amid growing competition in artificial intelligence and concerns over the future of AI business, the news outlet reported.
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