Bank of America opens $520 million credit line for OpenAI after initially turning it down

Bank of America granted OpenAI a $520 million credit line in late June or early July 2026, even though the bank rejected a similar request from the company just a few months earlier. Bloomberg reports this, citing people familiar with the deal.

Why BofA's reversal stands out

Bank of America is one of the largest financial institutions in the US, with assets of more than $3 trillion. Unlike JPMorgan and Goldman Sachs, which have previously joined syndicates financing AI companies, BofA had until recently kept its distance from lending directly to OpenAI.

The change of position came without a public statement. Bloomberg describes it as a "U-turn," a 180-degree reversal. The article does not disclose what prompted the reconsideration, and the exact terms of the credit line, including the rate, tenor and collateral, have not been published either.

The type of instrument matters: a credit line is not a one-off loan but a revolving credit mechanism. The borrower may draw funds up to the limit, repay them and borrow again as needed. This gives flexibility in managing operating liquidity without a rigid repayment schedule.

Why OpenAI needs $520 million from a bank

OpenAI is one of the most capital-intensive companies in the history of the private technology market. Spending on computing infrastructure, staff and R&D is estimated at tens of billions of dollars a year. In May 2025, the company closed a record $40 billion round at a valuation above $300 billion.

Despite the enormous amount of equity raised, credit lines remain a necessary tool: they help maintain operating liquidity without diluting ownership and provide flexibility during short-term spikes in resource consumption.

Key terms of the deal:

• Size of the credit line: $520 million
• Lender: Bank of America
• Instrument: revolving credit facility
• BofA previously turned down a similar OpenAI request
• The deal closed in late June or early July 2026

What this says about market confidence in OpenAI

A credit line from a traditional commercial bank is a fundamentally different signal from venture investment. A venture fund bets on a rising valuation; a bank assesses creditworthiness: cash-flow stability, ability to service debt, adequacy of collateral. That BofA approved the deal after an initial refusal points to a reassessment of OpenAI's risk as a borrower.

Large US banks that long watched the AI boom from the sidelines are steadily moving into positions as lenders to leading AI labs. For OpenAI, access to debt financing from institutional players is a sign of a maturing financial profile.

What this means

Bank of America's reversal is both a symbolic and a practical signal to the market. The traditional banking sector increasingly sees OpenAI less as a risky startup and more as a systemically important technology company with access to standard debt-market instruments. The $520 million BofA credit line is another marker of that shift.