SoftBank seeks financing for $500 billion Stargate AI project

SoftBank Group reported a net loss of 369.2 billion yen ($2.4 billion) for Q3, largely due to declines in the Vision Fund's public holdings, including notable losses from Coupang and Didi Global. Despite these financial struggles, founder Masayoshi Son is aggressively pursuing the $500 billion Stargate Project in collaboration with OpenAI, which aims to build large-scale AI infrastructure. The company is exploring a project financing model that would limit upfront equity contributions to 10% of the total cost, while leveraging debt markets for the majority of funding. This strategy is similar to those used in major infrastructure projects, allowing for significant long-term capital investments without heavy initial outlays. SoftBank has already begun initial work on the Stargate Project, including a data center in Abilene, Texas, with plans for further expansion across multiple U.S. states. Discussions are ongoing to attract additional investors and finalize the project's financial structure, which remains fluid as market conditions evolve.