SoftBank is seeking project financing to support its $500 billion Stargate Project with OpenAI through a collaborative effort.
According to a Bloomberg report, SoftBank and its partners—OpenAI, Oracle Corp., and Abu Dhabi’s MGX—may opt for a financing strategy that would enable them to spend only 10% of the total project cost through equity while leveraging debt markets for the rest.
The project requires a $100 billion initial investment, but SoftBank has not determined the funding sources yet, and the company continues talks to attract new investors. The funding structure for this project may consist of common equity at 10% and preferred equity and mezzanine debt at 20%-40% combined, followed by senior debt between 50%-70%.
One of the biggest AI datacenter projects, Stargate has started its rollout in Abilene, Texas with further development across multiple U.S. states. The company faces future challenges from both OpenAI’s executive
The financing details and specifics have not yet been fully disclosed by SoftBank and OpenAI.
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