Bank of America extends $520 million OpenAI credit line ahead of planned U.S. IPO

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Bank of America extends $520M credit to OpenAI

Highlights

Bank of America extended a $520 million credit line to OpenAI as the company prepares for a U.S. IPO targeting over $1 trillion valuation.
BofA aims to secure advisory roles in the IPOs of OpenAI and Anthropic, intensifying competition among banks for high-profile AI deals.
BofA reports raising nearly $500 billion in capital for AI-related companies since 2025, representing 60% of sector fundraising across markets.

Financing ties deepen before IPO push

As reported by Reuters, citing Bloomberg, Bank of America has provided the new credit facility to OpenAI, strengthening its relationship with one of the most closely watched companies in the artificial intelligence sector. The loan comes as OpenAI prepares for a stock market debut and as major banks compete for lending and advisory roles tied to high-profile AI issuers.

The bank is also pursuing advisory mandates on the planned IPOs of OpenAI and Anthropic, according to a second person familiar with the matter. OpenAI confidentially filed for a U.S. IPO last month, and Reuters previously reported that the ChatGPT maker is targeting a valuation of more than $1 trillion in a listing that could come as soon as this year.

OpenAI, founded in 2015 as a research-focused nonprofit, created a for-profit arm four years later to support the rising cost of developing AI systems. The company did not immediately respond to a Reuters request for comment.

AI dealmaking boosts Wall Street competition

BofA says internal data seen by Reuters shows it has helped raise nearly $500 billion in capital for AI-related companies since 2025, representing 60% of such fundraising across investment-grade debt, leveraged finance and equity capital markets. The new OpenAI loan adds to the bank's effort to reinforce its standing in AI-related capital markets financing.

The move follows Bank of America's role in SpaceX's IPO, where it served as a joint bookrunner and led the U.S. retail distribution effort. Mega IPOs can generate hundreds of millions of dollars in fees for Wall Street banks, while also creating opportunities for years of follow-on business.

In our earlier analysis of Bank of America (BAC), we highlighted the stock’s strong bullish structure, with price action holding well above key weekly moving averages despite signs of near-term overbought conditions. The piece also noted catalysts supporting sentiment, including upgraded earnings expectations and reports of preliminary M&A discussions, while outlining a near-term trading range with consolidation risk.

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