SoftBank Group is reportedly in discussions with multiple investment banks to issue bonds worth between $10 billion and $20 billion, aiming to refinance loans tied to its investment in U.S. tech giant OpenAI, according to sources familiar with the matter.

The potential bond sale, which could be denominated in both U.S. dollars and euros, might be finalized as early as September, the anonymous sources indicated. They added that negotiations are still ongoing, and the final terms remain subject to change.

Proceeds from the bond issuance are expected to partially repay a $40 billion bridge loan taken earlier this year to fund the OpenAI investment. SoftBank, founded and led by billionaire Masayoshi Son, holds a junk credit rating and is obligated to inject nearly $65 billion into OpenAI by October, with a portion of that funding sourced from loans.

Despite rising concerns over credit risk and doubts about the potential returns from such investments, this bond sale marks another round of financing by a company seeking to expand its footprint in the artificial intelligence sector. As capital competition intensifies, some firms are turning to high-yield bond investors for AI-related funding, with even some investment-grade issuers exploring this route.

Meanwhile, U.S. tech companies are planning to pour trillions of dollars into data centers and other AI infrastructure over the coming years. Data shows that year-to-date, corporations have already borrowed more than $410 billion from bond markets alone to finance these facilities and other AI-related initiatives.

A SoftBank spokesperson responded to a request for comment via email, stating: "We are considering various options to refinance the bridge loan, but nothing has been finalized, including the size of the financing."