Bank of America Extends Initial $520 Million Credit Line to OpenAI Ahead of IPO

July 8 (Reuters) – Bank of America has extended a $520 million credit facility to OpenAI, marking its first loan to the artificial‑intelligence firm as it prepares for an initial public offering, according to a source familiar with the situation who spoke to Reuters on Wednesday.

The loan positions Bank of America among OpenAI’s top lenders and reinforces its reputation as a leader in AI‑focused capital markets financing, the source added, asking to remain unnamed due to the confidential nature of the details.

Since 2025, Bank of America has facilitated nearly $500 billion in funding for AI‑related companies, representing about 60% of such activity across investment‑grade debt, leveraged finance and equity capital markets, according to internal data reviewed by Reuters.

The second‑largest U.S. bank is also considering advisory mandates for the anticipated IPOs of OpenAI and Anthropic, a second source familiar with the situation said.

This follows Bank of America’s involvement in SpaceX’s landmark IPO, where it served as a joint bookrunner and headed the U.S. retail distribution. The Elon Musk‑led company, which spans rockets to AI, launched in June with a valuation exceeding $2 trillion after completing the world’s largest initial public offering.

OpenAI submitted a confidential registration for a U.S. IPO last month. Reuters reported that the ChatGPT developer, a leading contender in the AI race, is aiming for a valuation above $1 trillion in a offering that could occur later this year.

Large‑scale IPOs are typically highly profitable for Wall Street banks, producing hundreds of millions of dollars in fees while paving the way for years of additional business.

OpenAI did not immediately reply to Reuters’ request for comment. The news of Bank of America’s credit line to the AI firm was first reported by Bloomberg earlier on Wednesday.

The AI company was established in 2015 as a research‑oriented nonprofit, but launched a for‑profit subsidiary four years later to help cover the rising expenses of developing AI systems.

(Reporting by Saeed Azhar in New York and Manya ​Saini in Bengaluru; Editing by Diti Pujara)

Source link