SoftBank Doubles Down on AI with Major Loan and Strategic Chip Pivot

SoftBank secures a $40B loan to boost its OpenAI stake to ~$64.6B, while its subsidiary Arm shifts from IP licensing to making its own AI server chips.

SoftBank Group Corp. is executing a dual-pronged strategy to cement its influence in the artificial intelligence sector. In a significant financial maneuver, the Japanese conglomerate has secured a massive loan to increase its stake in OpenAI. Concurrently, its subsidiary, Arm Holdings, is embarking on a fundamental strategic shift from licensing its intellectual property to manufacturing its own processors, directly targeting the lucrative server market.

A Landmark $40 Billion Credit Facility

On March 27, 2026, SoftBank finalized an unsecured bridge loan worth $40 billion, marking the largest dollar-denominated borrowing in the company's history. The facility, which matures on March 25, 2027, was provided by a consortium including JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corp, and MUFG Bank. The company intends to repay the credit line gradually through asset sales and operational cash flow.

A substantial portion of these funds—$30 billion—is designated as a follow-on investment into OpenAI. When combined with an earlier $30 billion commitment from Vision Fund 2, SoftBank's cumulative investment in the AI developer would reach approximately $64.6 billion. This financial commitment equates to an estimated 13 percent ownership stake in OpenAI.

Building "Stargate": A $500 Billion AI Infrastructure Vision

This financing is a key component of the broader "Stargate" project, a joint initiative to construct $500 billion worth of AI infrastructure over a four-year period. A concrete element of this plan involves a $33.3 billion data center and energy project in Piketon, Ohio. The facility is designed to achieve a capacity of ten gigawatts, positioning it to become one of the world's largest AI data centers. SB Energy, a SoftBank subsidiary, will lead the construction of a 9.2-gigawatt natural gas power plant. Furthermore, SoftBank is investing $4.2 billion in grid expansion in partnership with American Electric Power. The initial phase, delivering 800 megawatts, is scheduled for completion in early 2028.

Arm's Bold Move into Chip Manufacturing

In a parallel and transformative development, Arm Holdings announced a strategic pivot on March 24, 2026. The company unveiled its first internally developed processor: the Arm AGI CPU, engineered specifically for agentic AI workloads. This move represents a departure from Arm's traditional IP licensing model, as it will now sell its own branded chips.

With this new product line, Arm is targeting annual revenue of roughly $15 billion by 2031, contributing to an overall company goal of $25 billion. The ambition is to capture around 15 percent of the $100 billion server CPU market, where Arm will now compete directly with established industry giants.

By launching the AGI CPU, Arm is entering a segment currently dominated by specialized providers. The critical test of this transition from licensor to manufacturer—whether it can deliver the projected revenues—will become clear with the first sales figures following the planned market launch. This milestone is one that investors are likely to monitor very closely.