SoftBank Cashes Out of Nvidia to Double Down on AI Bets

SoftBank sold its entire 32.1 million-share stake in Nvidia for $5.83 billion in October, a move that coincided with the Japanese conglomerate’s partial divestment of $9.17 billion in T-Mobile shares. 

The sales form part of a broader effort to raise liquidity for what the company calls its “asset monetization” strategy, fueling a renewed push into artificial intelligence through multibillion-dollar investments in OpenAI and other ventures. Nvidia’s shares fell 2% on the day of the announcement.

The sale marks SoftBank’s second exit from the U.S. chipmaker, following a $4 billion stake disposal in 2019, yet its relationship with Nvidia remains indirect but significant. Many of SoftBank’s current projects, including the $500 billion Stargate data-center initiative, rely on Nvidia’s AI chips. 

Analysts estimate the firm will deploy $30.5 billion in new investments this quarter, $22.5 billion of which will go to OpenAI and $6.5 billion to semiconductor designer Ampere, representing more capital than it invested over the previous two years combined.

What Does This Mean for Me?

The asset sales helped SoftBank double profit in its fiscal second quarter, buoyed by a $19 billion gain from its Vision Fund, which has aggressively expanded across the AI value chain, from hardware to large-language models and robotics. 

Despite the recent volatility in AI-related equities and a pullback in SoftBank’s share price, the company maintains its stance that it is positioning for long-term growth in artificial intelligence rather than retreating from it.