Softbank sells entire $5.8B Nvidia stake as it goes

Softbank sells entire $5.8B Nvidia stake as it goes

Softbank has dumped its entire $5.83 billion stake in AI chip provider Nvidia as it pours more sources into its “all-in” guess on Sam Altman’s OpenAI.

The Japanese funding large, led by CEO Masayoshi Son, offered all of its 32.1 million Nvidia shares in October, according to an earnings assertion launched Tuesday. Softbank also offered a part of its $9.17 billion stake in telecom large T-Mobile.

When requested about the Nvidia sale, Softbank’s chief monetary officer Yoshimitsu Goto pointed to the huge dimension of the agency’s deliberate funding in OpenAI.

“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” Goto said during an investor presentation, according to CNBC.

“So through those options and tools we make sure that we are ready for funding in a very safe manner,” Goto added.

SoftBank CEO Masayoshi Son attends an event to pitch AI for companies in Tokyo, Japan February 3, 2025. REUTERS

The Nvidia and T-Mobile selloffs are “sources of cash that will be used to fund the $22.5 billion investment in OpenAI,” an individual conversant in the matter told CNBC. The proceeds will also be used on other Softbank bets.

Softbank’s choice to promote the stake got here during an ongoing debate on Wall Street about whether or not AI corporations like Nvidia are an overvalued “bubble” as large sums of cash circulate into the sector without fast returns.

OpenAI CEO Sam Altman attends a chat session with SoftBank group Chairman and CEO Masayoshi Son in Tokyo on Feb. 3. AFP through Getty Images

“Son is a savvy investor, so selling the entire stake must mean that he is no longer optimistic about the share price,” Wong Kok Hoi, CEO of APS Asset Management in Singapore, told Reuters. “Big tech companies may continue to invest heavily in GPU chips, but not at this year’s level for many years.”

Nvidia shares had been down more than 3% in early buying and selling Tuesday.

Softbank didn’t instantly return a request for remark. Nvidia declined to remark.

NVIDIA CEO Jensen Huang introduces an “Industrial AI Cloud” project during a press convention in Berlin, Germany, Nov. 4. REUTERS

In June, Son declared that he was “all in on OpenAI” and said he needed Softbank to “become the organizer of the industry in the artificial super intelligence era” – or AI that’s smarter than people.

Softbank’s second-quarter revenue swelled to 2.5 trillion yen, $16.6 billion, pushed by OpenAI’s surging valuation.

Softbank CEO Masayoshi Son and President Trump react after the signing of memorandums of understanding during a gathering with enterprise leaders at the U.S. Ambassador’s Residence on Oct. 28 in Tokyo. Getty Images

The funding large is also closely concerned in President Trump’s $500 billion “Stargate” AI infrastructure project, which requires a major buildup of AI data facilities wanted to develop cutting-edge tech.

Softbank has been a serial investor in Nvidia over the years. The company beforehand constructed a $4 billion stake in the chip provider as of 2017, only to promote the entire stake in 2019.

With Post wires

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