OpenAI secures $520 million credit line from Bank of America

OpenAI landed a $520 million revolving credit facility from Bank of America, a move tied to its confidential filing for a U.S. IPO that targets a valuation north of $1 trillion [2]. The financing not only extends OpenAI’s cash runway but also positions BofA as one of the AI lab’s biggest lenders and a potential IPO adviser, underscoring the banking sector’s race to lock in high‑profile AI deals.

Credit line and IPO context

Bank of America’s $520 million facility follows an earlier refusal of OpenAI’s loan request, a pattern Bloomberg notes where banks calibrate exposure ahead of a firm’s public offering [1]. Reuters adds that the credit line makes BofA one of OpenAI’s largest lenders and boosts its standing in AI‑related financing, reflecting the bank’s broader push into the sector [2]. BofA’s internal data, cited by Reuters, show the lender has helped raise close to $500 billion for AI‑focused firms since 2025, accounting for roughly 60 % of AI‑sector fundraising across debt, leveraged finance, and equity markets [2].

Competitive and strategic implications

The deal mirrors BofA’s recent role in SpaceX’s historic IPO, where the bank acted as joint bookrunner and managed retail distribution for a $2 trillion‑valued listing [2]. By securing the credit line and eyeing advisory mandates for both OpenAI and rival Anthropic, BofA is intensifying competition with other major banks for lucrative AI IPO mandates [2][4]. For practitioners, the facility signals that large AI labs are increasingly turning to bridge financing to preserve equity and manage timing, a trend that can affect runway calculations and the likelihood of near‑term liquidity events.

What to watch

• Regulatory filings – Monitor OpenAI’s S‑1 or equivalent registration statements for detailed covenant terms and confirmation of the credit line.
• Bank syndicate disclosures – Watch for announcements of additional lenders or underwriting banks as the IPO process advances.
• Anthropic IPO timeline – BofA’s interest in advising both firms could shape competitive dynamics in the AI IPO market.

The $520 million credit line deepens Bank of America’s foothold in AI financing just as OpenAI prepares a landmark public debut, raising questions about how much banking support will become a standard prerequisite for large‑scale AI companies seeking market access.