# BofA extends $520M loan to OpenAI ahead of IPO > Source: > Published: 2026-07-08 18:10:05+00:00 # BofA extends $520M loan to OpenAI ahead of IPO Bank of America reversed an earlier rejection to extend a credit line to the AI giant, signaling Wall Street's growing appetite for pre-IPO AI bets. Bank of America has extended a $520 million credit line to OpenAI, reversing an earlier decision to reject the AI company’s loan request. The move positions BofA as a potential key banking partner ahead of what could become one of the largest tech IPOs in history. OpenAI confidentially filed its S-1 paperwork with the SEC back in May 2026, and the company’s valuation has climbed to staggering heights. Following a $122 billion funding round in March 2026 backed by Amazon, Nvidia, and SoftBank, OpenAI’s valuation reached as high as $852 billion. ## Why BofA changed its mind Pre-IPO credit facilities are essentially a bank’s way of buying a front-row seat. The loan itself generates modest revenue, but the real prize is the underwriting fees, trading commissions, and wealth management business that flow from being embedded in a company’s financial infrastructure before it goes public. OpenAI’s IPO ambitions reportedly target valuations approaching $1 trillion, though some speculation suggests the timeline could slip into 2027. ## The crypto connection is real, and it already moved markets Decentralized AI tokens took sharp hits on June 26, 2026, when news surfaced about potential delays to OpenAI’s IPO timeline. The AI and Big Data token sector’s total market cap sat at roughly $17.7 billion during that sell-off, a reminder of how tightly crypto’s AI narrative trades are linked to developments at centralized AI companies. There’s also persistent speculation that OpenAI might eventually issue its own token as part of its financing strategy. A token from a company valued at $852 billion would be, to put it mildly, a significant event for digital asset markets. ## What this means for investors For crypto investors holding positions in decentralized AI tokens, OpenAI’s march toward a traditional IPO reinforces the centralized model. Investors looking at tokens in the AI and Big Data category, currently valued at a collective $17.7 billion, should consider that they’re competing for mindshare against a single company worth roughly 50 times their entire sector. The $122 billion funding round that OpenAI closed in March 2026 already demonstrated that the world’s largest tech companies and investment firms are willing to concentrate massive bets on centralized AI infrastructure. Watch the IPO timeline closely. Any further delays could trigger another round of volatility in AI-related tokens, while a successful listing at or near the rumored $1 trillion valuation would redefine the competitive landscape for every AI project in crypto. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).