Key Highlights
- OpenAI has secured a $520 million credit facility from Bank of America, marking the bank’s inaugural loan to the artificial intelligence leader.
- The financial institution had previously rejected OpenAI’s financing requests as recently as the previous year.
- The AI company submitted confidential IPO paperwork last month and could go public within the year.
- OpenAI’s aggregate banking credit facilities now exceed $5 billion.
- Bank of America is positioning itself for advisory roles in upcoming IPOs for both OpenAI and Anthropic.
Bank of America has extended a $520 million credit facility to OpenAI, representing the financial institution’s inaugural lending arrangement with the prominent artificial intelligence developer, according to an individual with direct knowledge of the transaction.
This substantial credit line positions Bank of America among OpenAI’s principal financial backers. The arrangement further solidifies the bank’s standing as a dominant player in AI sector financing.
Previously, Bank of America had declined to provide funding to OpenAI. Until last year, the bank’s leadership remained cautious about extending credit to enterprises with substantial operational expenses but uncertain profitability trajectories.
Under Chief Executive Officer Brian Moynihan’s leadership, Bank of America has maintained a “responsible growth” strategy. This approach typically steers clear of high-risk corporate lending opportunities.
What Prompted the Strategic Pivot
OpenAI’s strategic move toward going public influenced the bank’s lending decision, according to multiple sources with knowledge of the deliberations. Bank of America views participation in a high-profile stock market debut as strategically valuable for its Merrill Lynch wealth management division.
The institution’s comfort level with AI sector lending increased after concluding that capital markets would sustain these companies’ operational frameworks. This assessment holds despite many AI enterprises currently operating without positive net income.
Market participants have demonstrated substantial appetite for AI investments at elevated valuations. These valuations frequently disconnect from traditional earnings-based metrics. This evolving investor sentiment provided the bank with additional confidence to proceed with lending.
The newly established $520 million facility supplements existing credit arrangements OpenAI maintains with other financial institutions. The company’s total available banking credit now surpasses $5 billion.
OpenAI’s Journey Toward Public Markets
OpenAI submitted confidential registration documents for a U.S. stock exchange listing in the previous month. The organization behind ChatGPT is pursuing a valuation exceeding $1 trillion, according to reports.
The public offering could materialize before year’s end, based on prior Reuters coverage. Since its establishment, OpenAI has emerged as one of the artificial intelligence sector’s most recognizable entities.
The organization launched in 2015 as a nonprofit research institution. Four years later, it established a for-profit subsidiary to finance the escalating expenses associated with developing advanced AI technologies.
Since 2025, Bank of America has facilitated nearly $500 billion in capital raising for AI sector companies. This encompasses investment-grade bonds, leveraged financing, and equity capital markets transactions, per internal bank records reviewed by Reuters.
The bank represents approximately 60% of AI-related fundraising activity within these categories industry-wide. Additionally, it is pursuing advisory positions for both the OpenAI and Anthropic public offerings, a second source confirmed.
This development follows Bank of America’s involvement in another significant market debut earlier this year. The institution functioned as a joint bookrunner for SpaceX’s IPO in June and directed U.S. retail distribution efforts for that transaction.
SpaceX entered public markets at a valuation surpassing $2 trillion. That offering was characterized as the largest initial public offering in global financial history.
Major stock market debuts typically generate substantial revenue for investment banks. They produce significant fee income and frequently establish long-term client relationships with newly public companies.
OpenAI has not provided comment regarding the credit facility in response to inquiries. Bloomberg initially disclosed the credit line arrangement on Wednesday.
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