SoftBank has taken a significant step by divesting its entire $5.83 billion stake in Nvidia, a key player in the AI chip industry, as it focuses on bolstering investments in Sam Altman’s OpenAI. The decision was disclosed in an earnings statement released on Tuesday, which revealed that the Japanese investment powerhouse sold all of its 32.1 million shares in Nvidia as part of a broader strategy.
In addition to the Nvidia sell-off, SoftBank also offloaded a portion of its $9.17 billion investment in telecom giant T-Mobile. This strategic maneuver is seen as an effort to reallocate resources amid the increasing competition and investment dynamics within the AI sector.
SoftBank’s Chief Financial Officer, Yoshimitsu Goto, addressed the rationale behind the Nvidia sale during a recent investor presentation. He emphasized the company’s intent to cultivate substantial investment prospects while maintaining financial stability. “We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” Goto explained. He further noted that the proceeds from these divestitures would assist in funding the ambitious $22.5 billion investment in OpenAI and support other strategic initiatives.
The decision to liquidate Nvidia shares comes at a time when opinions on Wall Street are divided over whether AI companies, including Nvidia, are overpriced amid a surge of investments in the sector without immediate financial returns. Wong Kok Hoi, CEO of APS Asset Management in Singapore, suggested that the full divestment indicates a shift in sentiment from SoftBank, stating, “Son is a savvy investor, so selling the entire stake must mean that he is no longer optimistic about the share price.”
In early trading on Tuesday, Nvidia shares experienced a decline of over 3%. While SoftBank did not comment on the sale, Nvidia also refrained from providing a statement.
Masayoshi Son, the CEO of SoftBank, previously expressed his strong commitment to OpenAI in June, asserting that he is “all in on OpenAI” and aiming for SoftBank to spearhead developments in artificial superintelligence—technology that surpasses human intelligence. Following these developments, SoftBank’s second-quarter profits swelled to 2.5 trillion yen (about $16.6 billion), largely propelled by the rising valuation of OpenAI.
In addition to its investments in OpenAI, SoftBank is actively engaged in President Trump’s $500 billion “Stargate” AI infrastructure initiative, which underscores the company’s commitment to enhancing AI capabilities through the establishment of advanced data centers.
Historically, SoftBank has been a prolific investor in Nvidia, having built up a $4 billion stake in the chip manufacturer in 2017, only to divest that investment in 2019. This latest move signifies a notable shift in SoftBank’s investment strategy as the company navigates the evolving landscape of artificial intelligence and its associated technologies.
