BOA funds OpenAI IPO.
Bank of America Loans OpenAI $520 Million, Securing Role in AI Giant's Trillion-Dollar IPO
Anonymous
Key Points
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In 2024, OpenAI approached a group of nine global banks to arrange a $4 billion line of credit, and Bank of America was not part of that group, illustrating its earlier cautious stance on financing capital-intensive AI firms.
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Bank of America's internal data shows it has helped raise nearly $500 billion in capital for AI-related companies since 2025, representing about 60% of such fundraising across investment-grade debt, leveraged finance and equity capital markets.
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OpenAI's planned U.S. IPO could come as soon as this year with a valuation exceeding $1 trillion, and competition among banks for underwriting and advisory fees tied to megadeals has intensified.
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Industry analysis notes that plain-vanilla credit lines like this are strategically valuable because they help a bank establish an ongoing relationship with a high-profile issuer and position it for potential future underwriting and advisory work.
Bank of America has extended a $520 million credit line to OpenAI, making it one of the AI company's largest lenders, according to Reuters. The move marks the bank's first-ever loan to OpenAI and comes just weeks after the company filed confidentially for a U.S. IPO.
The deal is a notable shift for Bank of America, which was left out of a nine-bank group that arranged a $4 billion credit line for OpenAI in 2024. Now the bank is fighting for a seat at the table ahead of what could be one of the biggest tech IPOs in history — with OpenAI's valuation expected to top $1 trillion.
From the Sidelines to One of OpenAI's Biggest Lenders
In 2024, OpenAI tapped nine global banks to build a $4 billion credit facility. Bank of America was not on that list, according to Kitco. The bank had been cautious about lending to capital-intensive AI companies. That caution is now gone.
The new $520 million credit line flips that script entirely. Crypto Briefing reports the loan positions Bank of America as a key banking partner ahead of OpenAI's anticipated public listing. Plain-vanilla credit lines like this are seen as a foot in the door — a way to build a relationship before the much larger fees from underwriting and advisory work come into play.
Credit Lines as a Strategy to Win Billion-Dollar Fees
Banks don't extend big credit lines just to collect interest. When a company like OpenAI goes public, the underwriting fees alone can run into hundreds of millions of dollars. A lender that already has a relationship with the issuer is far better placed to win that business.
Industry observers note that these loans help banks lock in ongoing relationships with high-profile clients, according to Cryptopolitan. By lending now, Bank of America puts itself in line for future advisory and underwriting roles — the same playbook it used with SpaceX, where it also worked on IPO preparations.
BofA Claims 60% of AI Capital Markets Since 2025
Bank of America isn't just chasing OpenAI. The bank says it has helped raise nearly $500 billion for AI-related companies since 2025, according to Head Topics. That figure covers investment-grade debt, leveraged finance, and equity markets. The bank claims that represents about 60% of all such fundraising across those categories.
The bank has also taken on advisory roles for both OpenAI and Anthropic as those companies prepare for potential IPOs. This puts it at the center of what could be the most competitive stretch of AI dealmaking in history.
OpenAI's IPO Could Top $1 Trillion This Year
OpenAI filed confidentially for a U.S. IPO last month. A listing could come as soon as this year, with a valuation widely expected to exceed $1 trillion, according to Crypto Briefing. That would make it one of the largest public debuts ever, drawing fierce competition among Wall Street banks for every possible role.
The race to finance OpenAI reflects a broader scramble across Wall Street to get exposure to the AI boom before the biggest deals close. For Bank of America, the $520 million credit line is less about the loan itself and more about what comes next.
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