SoftBank Sells Out of Nvidia as It Bets Big on AI
With a blockbuster stake sale and record quarter behind it, SoftBank turns its gaze to OpenAI and infrastructure bets as the AI prize race begins.
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SoftBank Group said it sold its entire 32.1 million-share stake in Nvidia Corp. in October, raising about $5.83 billion as it shifts its focus toward artificial intelligence.
The Japanese investment giant reported a net profit of ¥2.5 trillion (about $16.6 billion) for the quarter to September, more than double from a year ago, driven largely by valuation gains across its Vision Fund and AI-linked holdings.
CFO Yoshimitsu Goto described the decision as part of a broader plan to “maintain financial strength while funding new opportunities,” signaling a strategic pivot away from legacy chip-maker exposure and toward large-scale bets on AI infrastructure.
The move aligns with SoftBank’s announced commitment to support OpenAI in what could be a $40 billion funding round and to back the £$500 billion “Stargate” computing-infrastructure initiative in partnership with OpenAI and Oracle Corporation.
Analysts noted the timing as noteworthy as SoftBank is selling a block of stock as Nvidia’s valuation soared past $5 trillion, raising questions about whether the company is capturing value or simply reallocating risk.
SoftBank’s next few quarters will test whether this pivot translates into realized gains or greater exposure to the risks of the unfolding AI boom.
During a fireside chat in 2024, Nvidia CEO Jensen Huang joked with Softbank CEO Masayoshi Son about selling too soon. Son described Nvidia as “the fish that got away,” since the missed gains could have been over $150 billion.
In 2017, SoftBank’s Vision Fund bought about 4.9% of Nvidia, making it one of the largest shareholders in the company. Two years later, Softbank began selling its stake, which was worth $4 billion at the time but would be valued at $160 billion today.
Softbank’s focus on artificial intelligence has not surprised many, even as worries about a possible AI bubble grow. By increasing its AI investments while analysts expect a market correction, SoftBank seems to be showing confidence in the unrealized potential of the AI boom.
“There are different opinions, but Softbank believes the risk of not investing is much greater than the risk of investing,” said Yoshimitsu Goto at an investor briefing in Tokyo.
