Bank of America Extends $520M Credit to OpenAI as AI Giant Eyes IPO

Key Takeaways

• Bank of America extended a $520 million credit facility to OpenAI, marking the financial institution’s inaugural loan to the AI developer.
• The financial giant previously rejected OpenAI’s financing requests just a year ago.
• OpenAI submitted confidential paperwork for a U.S. stock market debut last month, with a potential listing later this year.
• OpenAI’s cumulative credit access from banking institutions now exceeds $5 billion.
• Bank of America is positioning itself for advisory positions on upcoming IPOs from OpenAI and Anthropic.

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Bank of America has extended a $520 million credit facility to OpenAI, marking the financial institution’s inaugural lending arrangement with the prominent artificial intelligence developer, according to an insider with knowledge of the transaction.

This financing arrangement positions Bank of America among OpenAI’s most significant creditors while reinforcing the institution’s standing as a prominent financier in the artificial intelligence sector.

The financial giant had previously declined OpenAI’s financing applications. Just twelve months ago, banking leadership expressed reservations about extending credit to enterprises characterized by substantial expenditures without demonstrated profitability pathways.

Bank of America’s Chief Executive Officer Brian Moynihan has championed a “responsible growth” strategy that typically steers clear of high-risk corporate lending opportunities.

What Prompted the Strategic Shift

OpenAI’s intentions to pursue a public market debut influenced the bank’s lending decision, according to individuals with direct knowledge of the situation. Bank of America recognizes participation in a marquee stock offering as strategically valuable for its Merrill Lynch wealth management division.

The institution grew increasingly confident about financing artificial intelligence enterprises after concluding that market conditions would sustain their operational frameworks, despite many remaining unprofitable.

Investment community participants have demonstrated willingness to support AI companies at substantial valuations frequently disconnected from present-day earnings performance. This evolution in market sentiment provided the bank with greater assurance to extend credit.

The fresh $520 million credit line supplements existing banking facilities available to OpenAI. Collectively, the AI company can now draw upon more than $5 billion in credit resources.

The Road to a Public Market Listing

OpenAI submitted confidential documentation for a U.S. exchange listing last month. The organization behind ChatGPT reportedly seeks a market capitalization exceeding $1 trillion.

The public debut could materialize before year-end, based on previous Reuters intelligence. OpenAI has emerged as one of the artificial intelligence sector’s most recognized entities since its establishment.

The organization launched in 2015 as a nonprofit research institution. It established a profit-oriented subsidiary four years subsequently to finance the escalating expenses of developing AI technologies.

Bank of America has facilitated approximately $500 billion in capital-raising activities for AI-focused enterprises since 2025. This encompasses investment-grade obligations, leveraged financing arrangements, and equity capital transactions, according to internal banking records reviewed by Reuters.

The institution represents 60% of such AI fundraising activity throughout the financial services industry. It is additionally pursuing advisory mandates for both the OpenAI and Anthropic public offerings, according to a separate source.

This development follows Bank of America’s involvement in another substantial market debut earlier this year. The bank functioned as a joint bookrunner for the SpaceX public offering in June while directing U.S. retail distribution for that transaction.

SpaceX entered public markets at a valuation surpassing $2 trillion, with that listing characterized as the largest IPO in global history.

Major public offerings typically generate substantial revenue for financial institutions. They produce significant fee income and can establish enduring business relationships with the companies involved.

OpenAI has not yet provided commentary regarding the credit arrangement. Bloomberg initially disclosed news of the credit facility on Wednesday.

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