TLDR
- OpenAI received a $520 million credit facility from Bank of America, marking the institution’s initial financing to the AI firm.
- The financial institution had previously rejected OpenAI’s funding requests within the past year.
- The AI company submitted confidential IPO paperwork last month with a potential public debut scheduled for this year.
- OpenAI’s aggregate credit facilities from banking partners now exceed $5 billion.
- The financial institution is pursuing advisory positions for upcoming OpenAI and Anthropic public offerings.
Bank of America has extended a $520 million credit facility to OpenAI. This represents the financial institution’s inaugural loan to the AI powerhouse, as confirmed by an insider with knowledge of the arrangement.
The financing positions Bank of America among OpenAI’s most significant creditors. The deal further strengthens the institution’s standing as a prominent player in artificial intelligence sector financing.
Previously, Bank of America had declined similar funding requests from OpenAI. Just last year, senior leadership expressed hesitation regarding enterprises with substantial capital requirements but unclear paths to profitability.
Chief Executive Officer Brian Moynihan has championed a “responsible growth” strategy at Bank of America. This approach typically steers clear of high-risk ventures when dealing with corporate clientele.
Why the Bank Changed Course
OpenAI’s upcoming initial public offering significantly influenced the institution’s lending decision, sources close to the matter revealed. Bank of America views participation in a prominent market debut as strategically valuable for its Merrill Lynch wealth management division.
The financial institution developed greater confidence in AI sector lending after determining the market could sustain these business frameworks. This assessment held despite many AI enterprises currently operating without profitability.
Market participants have demonstrated willingness to support AI companies at substantial valuations. These valuations frequently lack connection to present-day revenue figures. This evolution in investor sentiment provided the institution with additional assurance to proceed.
The newly established $520 million facility supplements existing credit lines from other financial institutions. Collectively, OpenAI can now access in excess of $5 billion through various banking relationships.
OpenAI’s Path to an IPO
OpenAI submitted confidential documentation for a U.S. public market debut last month. The organization behind ChatGPT is reportedly targeting a valuation exceeding $1 trillion.
The public offering might materialize before year’s end, based on previous Reuters coverage. OpenAI has emerged as one of the artificial intelligence sector’s most recognizable entities since its establishment.
The organization launched in 2015 as a nonprofit research institution. It established a commercial division four years afterward to finance the escalating expenses of developing advanced AI systems.
Bank of America has facilitated nearly $500 billion in capital raises for AI-sector companies since 2025. This encompasses investment-grade debt instruments, leveraged financing, and equity capital market transactions, per internal institutional data reviewed by Reuters.
The institution represents 60% of such AI-focused fundraising activity industry-wide. It is simultaneously pursuing advisory mandates for both the OpenAI and Anthropic public market debuts, a secondary source indicated.
This development follows Bank of America’s involvement in another major public offering earlier this year. The institution functioned as a joint bookrunner for the SpaceX IPO in June and spearheaded U.S. retail distribution efforts for that transaction.
SpaceX launched publicly at a valuation surpassing $2 trillion. That market debut was characterized as the largest IPO in global history.
Major public offerings typically yield substantial returns for Wall Street institutions. They produce sizable fee income and can establish long-term commercial relationships with the listed entities.
OpenAI has not yet provided commentary regarding the credit facility. Bloomberg initially disclosed the financing arrangement on Wednesday.
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