OpenAI Lands $520 Million Line of Credit From Bank of America

Bank of America has reportedly given OpenAI a $520 million line of credit ahead of its planned IPO.

That’s according to a report Wednesday (July 8) by Reuters, citing a source with knowledge of the matter.

According to Reuters, the loan makes Bank of America one of OpenAI’s biggest lenders and boosts its standing in financing AI-related capital projects, the source said.

Bank of America has helped raise close $500 billion in capital for AI-related firms since last year, accounting for 60% of that sort of fundraising across investment-grade debt, leveraged finance and equity capital markets, the report added, citing internal data reviewed by Reuters.

Another source said the bank, America’s second largest lender, is also considering advisory roles in the planned initial public offerings (IPOs) of both OpenAI and rival Anthropic.

As Retuers notes, the move follows Bank of America’s role in SpaceX’s mammoth public listing, serving as a joint bookrunner while overseeing the U.S. retail distribution effort. Elon Musk’s rockets/AI company made its stock market debut in June at a valuation of more than $2 trillion in the largest-ever IPO.

OpenAI confidentially ⁠filed for a U.S. IPO last month, targeting a valuation of more than $1 trillion, though the company has reportedly weighed pushing back its planned listing.

PYMNTS has reached out to OpenAI for comment but has not yet gotten a reply. A spokesperson for Bank of America declined to comment. The line of credit was first reported Wednesday by Bloomberg News.

In other artificial intelligence news, new PYMNTS Intelligence research with Splitit suggests that if AI shopping assistants become responsible for suggesting financing options, providers will increasingly compete to satisfy algorithms that consider cost, credit impact and consumer preferences before offering a recommendation.

According to the research, 61% of U.S. consumers would consider letting an AI shopping assistant recommend a pay later option for at least one purchase category. The appeal of pay later, the report said, shows why consumers are ready to make AI part of the buy now, pay later (BNPL) process.

“Financing choices have become increasingly complicated as traditional credit cards, card-linked installment plans and BNPL products often coexist at checkout,” the report said.

“Comparing interest costs, repayment schedules, rewards, credit implications and promotional offers requires time that many consumers would rather spend completing a purchase. AI promises to reduce that burden by evaluating available options almost instantly.”