United States lender grants OpenAI $520 million credit
PUBLISHED Jul 9, 2026, 9:28 AM ET
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SAN FRANCISCO, July 9, 2026 – Bank of America has extended a $520 million revolving credit line to OpenAI, marking the U.S. lender’s first lending arrangement with the San Francisco-based creator of ChatGPT, according to a Reuters report citing a person familiar with the matter. The new facility makes Bank of America one of OpenAI’s largest creditors and underscores how major Wall Street institutions are competing to participate in the rapid expansion of the artificial intelligence sector. The financing comes as OpenAI prepares for a landmark initial public offering in the United States after confidentially filing draft paperwork in early June 2026. The deal represents a strategic reversal inside Bank of America, whose investment banking division had initially declined OpenAI’s loan request because of concerns over the company’s heavy cash burn and the speculative nature of the generative AI market, industry insiders said. Senior executives subsequently changed course, concluding that providing debt financing would be critical to securing a lead advisory and underwriting role in OpenAI’s planned stock market debut. OpenAI is targeting a valuation of more than $1 trillion in its IPO, which would rank among the largest listings in corporate history and could generate underwriting fees for banks that reach into the hundreds of millions of dollars.
By Michael Grant | JQJO News
Timeline of Events
- Early Jun 2026 OpenAI files confidential IPO paperwork
- Early Jun 2026 Bank initially rejects lending request
- Late Jun 2026 Executives reassess OpenAI financing opportunity
- Late Jun 2026 Bank negotiates revolving credit facility
- Jul 9 2026 Reuters report reveals $520 million line
- Jul 9 2026 Bank becomes major OpenAI creditor
- Mid 2026 OpenAI targets trillion-dollar IPO valuation
News Intelligence
- This deal shows big banks are betting on AI. It could mean more investments in tech, possibly boosting the economy and job market. If you're interested in tech stocks, keep an eye on OpenAI's upcoming IPO.
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