BUSINESS

United States lender grants OpenAI $520 million credit

▪

Read, Watch or Listen

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.

Prepared by Christopher Adams and reviewed by editorial team.

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

Why This Matters to You

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.

The Bottom Line

Bank of America's $520 million credit to OpenAI is a significant move. It shows Wall Street's growing interest in AI, despite the risks. This could lead to more opportunities in the tech sector. Worth forwarding if you know someone considering tech investments.