Technology
Friday, June 28th, 2024 7:04 pm EDT
Key Points
- SoftBank announced plans to issue approximately $900 million in U.S. dollar-denominated bonds and 900 million euros (about $962.8 million) in euro-denominated bonds to pay down debt and fund general corporate purposes, with interest rates ranging from 5.4% to 7% per annum.
- The bond issuance follows SoftBank’s narrowing financial losses and successes, including the IPO of chip designer Arm, as the company seeks to ramp up investments in artificial intelligence through its Vision Fund.
- Masayoshi Son, SoftBank’s founder and CEO, recently discussed the concept of artificial super intelligence (ASI), predicting AI that is 10,000 times smarter than humans within 10 years, as SoftBank aims to capitalize on improved investor sentiment reflected by a 65% year-to-date rise in its share price
SoftBank announced plans to issue euro- and dollar-denominated bonds to pay down debt and refocus its investments on artificial intelligence. The Japanese holding company will issue approximately $900 million in U.S. dollar-denominated bonds in two tranches, and 900 million euros (about $962.8 million) in euro-denominated bonds, also in two tranches, with interest rates ranging from 5.4% to 7% per annum. The proceeds from these bonds will be used for debt repayment and general corporate purposes. Following the announcement, SoftBank’s shares closed up 2.5%.
This move to raise funds through debt comes as SoftBank’s overall financial losses begin to narrow, partly due to the successful initial public offering (IPO) of chip designer Arm. The company, which operates the Vision Fund, a significant technology investment arm, has indicated plans to increase investments in artificial intelligence (AI) companies. In a rare public appearance this month, Masayoshi Son, founder and CEO of SoftBank, discussed a concept he called artificial super intelligence (ASI), which he defines as AI that is 10,000 times smarter than humans, expected to exist within the next decade.
SoftBank appears to be leveraging improving investor sentiment toward the company, evidenced by a 65% year-to-date rise in its share price.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/28/softbank-to-raise-1point86-billion-in-debt-as-ceo-talks-up-super-ai.html
