Bank of America has extended a $520 million credit line to OpenAI, marking the lender’s first loan to the artificial intelligence company as it prepares for a heavily anticipated initial public offering. The move signals that one of Wall Street’s most conservative institutions is now willing to back AI startups, reversing a previous stance that avoided such financing due to the sector’s lack of profitability.
Key details and background:
Bank of America had previously declined OpenAI’s requests for financing, with executives as recently as last year expressing caution about companies that spend heavily without a clear path to profitability. CEO Brian Moynihan’s “responsible growth” strategy traditionally eschewed risky bets on corporate clients. The bank’s change of heart stems from its desire to secure a role in what could be one of the largest stock listings in history.
OpenAI confidentially filed for a U.S. IPO last month and is reportedly seeking a valuation above $1 trillion. The listing may occur as early as this year. By providing the credit facility, Bank of America positions itself to benefit from the lucrative advisory and wealth-management opportunities that typically accompany such mega-IPOs, particularly through its Merrill Lynch arm.
The new loan brings OpenAI’s total available credit from banks to more than $5 billion. Bank of America has been a dominant force in AI-related fundraising, having raised nearly $500 billion for such companies since 2025, accounting for 60% of all similar financing across investment-grade debt, leveraged finance, and equity capital markets. The bank is also exploring advisory roles for the public listings of both OpenAI and its competitor Anthropic.
Bank of America’s involvement echoes its role in June’s record-breaking SpaceX IPO, where it served as a joint bookrunner and led U.S. retail distribution. SpaceX debuted at a valuation exceeding $2 trillion, still the largest IPO on record. With its $3.5 trillion balance sheet and $424 billion market capitalization, the bank has ample capacity to absorb such exposures.
The decision underscores a broader shift in investor appetite for AI companies, where high valuations are often detached from current earnings, and it reinforces Wall Street’s growing conviction in AI’s commercial viability despite ongoing losses.
