Bank of America has quietly extended a $520 million credit line to OpenAI, reversing an earlier decision to walk away from lending to the ChatGPT maker and positioning itself for a lead role in what could become one of the largest IPOs in history. The second‑largest US lender had previously viewed OpenAI and similar money‑losing AI startups as too risky, but changed its stance as it became clear that capital markets continue to reward aggressive AI spending and that OpenAI’s planned listing could generate substantial advisory and underwriting fees, according to Bloomberg.
The new facility is Bank of America’s first loan to OpenAI and makes it one of the company’s largest lenders. It adds to an existing undrawn revolving credit line originally set up in October 2024 with a syndicate of nine global banks for $4 billion and later increased to $4.7 billion, bringing total committed capital available to OpenAI to more than $5 billion. The bank had stayed on the sidelines when that line was arranged and upsized, underscoring how notable this U‑turn is for CEO Brian Moynihan’s traditionally risk‑averse approach.
OpenAI has already confidentially filed for an IPO and is part of an AI listing pipeline Bloomberg estimates at roughly $3.6 trillion in combined potential valuations, alongside SpaceX and Anthropic. The company was valued at about $852 billion in its most recent funding round in March, and bankers and investors expect it to target a valuation north of $1 trillion when it goes public. Bank of America is now vying for advisory roles on the IPOs of both OpenAI and Anthropic, hoping that extending credit will strengthen its case to be added to a top‑tier syndicate that already includes Goldman Sachs and Morgan Stanley.
For OpenAI, the credit line is part of a broader effort to secure flexible financing while it invests heavily in AI infrastructure, custom chips and model development ahead of a listing. The company has said publicly that it has not yet decided on IPO timing and may remain private longer to pursue initiatives that are easier outside public markets, but the enlarged bank group and total facilities above $5 billion give it the option to accelerate a listing if market conditions and strategic priorities align.
The move also illustrates how the AI boom is reshaping risk appetites on Wall Street. Bank of America’s about‑face—after initially judging OpenAI too risky—reflects a recalibration as AI‑linked deals drive record fees and as lenders seek to establish themselves as leaders in AI capital markets. With OpenAI, Anthropic and other AI developers lining up public offerings at or near trillion‑dollar valuations, banks that once hesitated on credit exposure are now competing aggressively to secure relationships and deal flow across loans, equity and advisory mandates.
