SoftBank Group has sold its entire stake in chipmaker Nvidia. The sale, valued at $5.83 billion, was completed in October. The Japanese conglomerate will use these funds to finance its massive bet on Artificial Intelligence through SoftBank’s investment in OpenAI. The firm’s CFO, Yoshimitsu Goto, confirmed that the magnitude of the bet on OpenAI required the liquidation of existing assets.
On Tuesday, in its financial filing, SoftBank revealed the sale of 32.1 million Nvidia shares. This $5.83 billion liquidation is part of a broader “asset monetization.” This strategy also included the partial sale of its stake in T-Mobile for $9.17 billion. The goal is clear: to raise the capital for the total investment of $40 billion in OpenAI by the end of the year. A crucial payment of $22.5 billion to OpenAI is scheduled for December.
Likewise, this is the second time SoftBank has completely exited the chip giant Nvidia. The group had bought an initial stake in 2017, sold it in 2019, and later re-entered. The current decision is a strong strategic signal. SoftBank is shifting its focus from AI hardware (chips) toward the projects and software that use them. Jiahao Sun, CEO of the decentralized AI platform FLock.io, called the move “strong but hugely unexpected.” Sun explores how blockchain technology can power new AI models.
Is SoftBank betting on software while Wall Street doubts the hardware?
The massive SoftBank’s investment in OpenAI comes at a time of market skepticism. Wall Street questions whether massive spending on AI infrastructure will generate profitability. Furthermore, OpenAI faces its own challenges. Its CEO, Sam Altman, was recently criticized for denying seeking federal loan guarantees, something his company did request. Despite this, SoftBank’s Vision Fund reported a $23.4 billion gain. This gain was driven by $14.3 billion from revaluing OpenAI at $260 billion.
The hardware market shows some signs of caution. TSMC, Nvidia’s key supplier, reported its slowest revenue growth since February 2024. Nonetheless, SoftBank’s bet on AI is total. The firm also arranged bridge loans for ABB Robotics. It all aligns with its mission to “realize artificial super intelligence.” Meanwhile, Nvidia (NVDA) shares fell 1.46% in pre-market trading after the massive sale news broke.
