Feb. 11 (Bloomberg) -- Bloomberg published a blog post today (Feb. 11) reporting thatSoftBank（Founder of SoftBank GroupMasayoshi SonIn order to participate in the "Stargate (US TV and film series)"The Stargate project.Complex, highly leveraged projects will be usedFinancingMode.
"The Stargate program is primarily designed to advance U.S. efforts in the area of AI The development of the field, co-founded by OpenAI, SoftBank, Oracle and investment firm MGX, is expected to result in a total investment of up to $500 billion (note: currently around RMB 3.65 trillion).
The report said Sun is considering a project financing model similar to that used for oil and gas projects, which has the advantage of less upfront investment and long-term financing based on the project's expected cash flow.
"The Stargate project is planned to be a combination of a data center and a power generation project. Currently under discussion, SoftBank, OpenAI, Oracle and Abu Dhabi's MGX will jointly contribute about $10%, with most of the rest of the funds to be raised through the debt markets.
"The Stargate project plans to spend an initial $100 billion (currently about 730,807 million yuan), but SoftBank has yet to determine where most of the money will come from and is in talks with other potential investors.
Bloomberg suggests that SoftBank may use highly leveraged financing, with possible financing options including 10% of common stock, 20% of preferred stock and mezzanine debt, and 70% of senior debt, and another option of 40% of preferred stock and mezzanine debt, and 50% of senior debt. These are highly leveraged structures similar to infrastructure projects such as pipelines, power plants, bridges or telecommunications networks.
Investors and creditors are concerned about Masayoshi Son's tendency to invest big. SoftBank is expected to post a huge loss in the third quarter, and its Vision Fund's public portfolio is facing losses. In addition, some of the unlisted startups in which SoftBank has invested are also facing difficulties.
