SoftBank Sells Entire Nvidia Stake to Fund Massive OpenAI Investment
Japan’s SoftBank Group has sold its complete stake in chipmaker Nvidia, raising $5.83 billion to finance a major “all in” investment in ChatGPT creator OpenAI. The Japanese conglomerate disclosed it sold 32.1 million Nvidia shares in October as part of this strategic shift.
Key Takeaways
- SoftBank sold entire Nvidia stake for $5.83 billion
- Proceeds to fund $22.5 billion OpenAI investment
- Second time SoftBank has exited Nvidia position
- Part of broader $30.5 billion capital reallocation
Funding Strategy and Analyst Views
According to SoftBank CFO Yoshimitsu Goto, the sale represents the company’s broader “asset monetization” strategy. “We want to provide a lot of investment opportunities for investors while maintaining financial strength,” Goto stated during an investor presentation.
CNBC reports that proceeds from Nvidia and T-Mobile share sales, plus a margin loan on SoftBank’s Arm holding, will serve as cash sources for the planned $22.5 billion OpenAI investment. Additional funds will support other initiatives including ABB’s robotics unit acquisition.
Analysts emphasize this reflects capital reallocation rather than negative sentiment toward Nvidia. “This should not be seen as a cautious or negative stance on Nvidia,” said Rolf Bulk of New Street Research.
Historical Context and Founder’s Perspective
This marks SoftBank’s second exit from Nvidia. The Vision Fund first invested $4 billion in 2017 before fully divesting in 2019. Ironically, founder Masayoshi Son later called Nvidia his “missed golden opportunity,” noting “The fish that got away was big” after the share price surge.
Until 2019, SoftBank was Nvidia’s largest shareholder with 4.9% ownership. The current repositioning underscores Son’s renewed focus on artificial intelligence as SoftBank aims to cement its role in the global AI ecosystem.
