SoftBank Sells Entire $5.8 Billion Nvidia Stake to Fund AI Ambitions, Sparking Market Concerns
40 Sources
[1]
SoftBank's Nvidia sale rattles market, raises questions | TechCrunch
Masayoshi Son isn't known for half measures. The SoftBank founder's career has been studded with brow-raising bets, each one seemingly more outrageous than the last. His latest move is to cash out his entire $5.8 billion NVIDIA stake to go all-in on AI, and while it surprised the business world on
[2]
SoftBank offloads entire $5.83 billion stake in Nvidia -- firm sells off stock, cash will fund major investment in OpenAI, also in talks over Stargate
SoftBank has confirmed it sold its entire stake in Nvidia in October, offloading 32.1 million shares for $5.83 billion. The disclosure came Tuesday alongside the Japanese conglomerate's latest earnings report, which also revealed a $9.17 billion sale of T-Mobile US shares. Both moves form part of a
[3]
SoftBank's $5.8 billion Nvidia stake sale stirs fresh AI bubble fears
Nov 11 (Reuters) - SoftBank Group's $5.8 billion sale of its Nvidia stake jolted stock markets on Tuesday, stoking fears that the frenzy around artificial intelligence may have peaked, especially after recent warnings from Wall Street bank chiefs and a famed short seller. In its quarterly results,
[4]
SoftBank profits more than double as AI valuations soar
Masayoshi Son's SoftBank Group said net profit more than doubled in its second quarter and announced a four-to-one stock split on Tuesday as valuations of artificial intelligence companies soar alongside growing fears of a bubble. Net profit at the AI-invested company was ¥2.5tn ($16.2bn) in the
[5]
SoftBank rides the AI wave as OpenAI lifts Vision Fund to $19 billion gain
The logo of Japanese company SoftBank Group is seen outside the company's headquarters in Tokyo on January 22, 2025. Japanese giant SoftBank on Tuesday posted a $19 billion gain on its Vision Fund in its fiscal second quarter ended Sept. 30. The broader Vision Fund segment factors in
[6]
SoftBank Sells $5.8 Billion Stake in Nvidia to Pay for OpenAI Deals
SoftBank, the Japanese technology giant, has staked its future on artificial intelligence. But to help pay for those expensive investments, the company last month sold its entire $5.8 billion holdings in Nvidia, the chipmaker behind the A.I. boom, SoftBank said in its quarterly earnings report on
[7]
SoftBank sold its Nvidia shares while betting big on OpenAI
Stake sales were part of SoftBank's broader "asset monetization" strategy SoftBank's decision to sell all its Nvidia shares has drawn sharp attention from investors already wary of overheated AI valuations. The Japanese conglomerate sold its entire 32.1 million-share holding for about $5.83
[8]
Softbank dumps its entire Nvidia portfolio worth $5.8 billion as its CEO goes all-in on OpenAI to the tune of $30 billion | Fortune
SoftBank sold 32.1 million Nvidia shares in October, the company disclosed Tuesday alongside fiscal second-quarter earnings showing net profit more than doubling to 2.5 trillion yen, or approximately $16.6 billion. The windfall represented SoftBank's best quarterly performance since July-September
[9]
SoftBank cashes out $5.8bn Nvidia stake to fund OpenAI bet
Masayoshi Son's SoftBank surprised investors when it said it had sold its entire Nvidia stake for about $5.83 billion to help fund more bets on AI. The Tokyo-based conglomerate said it offloaded roughly 32 million shares in the U.S. chipmaker last month as it builds up capital for its expanding
[10]
SoftBank Dumps Entire $5.8B Nvidia Stake to Double Down on OpenAI Bet - Decrypt
"As SoftBank's investment in OpenAI was very large the company had to use its existing assets to finance new investments," CFO Yoshimitsu Goto told reporters. SoftBank Group sold all its shares in Nvidia in October, severing ties with the AI chipmaker that powered the sector's historic rally. The
[11]
SoftBank just sold its entire $5.83 billion stake in Nvidia but I'm sure it'll all feed back into Team Green's pockets before long
SoftBank is the world's biggest technology investment management group, and it's just pulled its entire $5.83 billion stake out of Nvidia, according to Bloomberg. It has reportedly sold all these shares to help bankroll its continued investments into AI. This was followed by its own share price
[12]
SoftBank ditches Nvidia in favour of deeper drive into AI
SoftBank has exited Nvidia for about €5.4bn and, after reporting a €14bn quarterly profit, said it will redirect capital into AI investments. Japanese multinational investment company SoftBank said it had sold its remaining stake in Nvidia for $5.83 billion (€5bn) as it pivots towards AI
[13]
AI stock boom delivers bumper quarter for Japan's SoftBank
Tokyo (AFP) - Japan's SoftBank Group reported Tuesday that net profit more than doubled in the second quarter thanks to a boom in AI-related share prices that has fuelled fears of a market bubble. The tech investment giant -- a major backer of ChatGPT-maker OpenAI -- logged a net profit of 2.5
[14]
SoftBank offloads $5.8B stake in Nvidia to free up cash for OpenAI investment - SiliconANGLE
SoftBank offloads $5.8B stake in Nvidia to free up cash for OpenAI investment SoftBank Group Corp. has sold its entire remaining stake in Nvidia Corp. in order to raise funds for its promised $22.5 billion investment in ChatGPT maker OpenAI Group PBC. The Japanese company said in its latest
[15]
Why did SoftBank sell off its Nvidia stake?
The bad vibes were muted somewhat by news of what SoftBank says it will do with the proceeds of the sell off, along with those from the sale of some of its $9.17 billion T-Mobile stake: The firm will double down on another big bet in the AI space-OpenAI. SoftBank expects to directly invest $30
[16]
Softbank sells off entire Nvidia stake for 'all in' OpenAI bet
This is not the first time Softbank has cashed out on Nvidia shares. Japanese investment giant Softbank has sold all of its 31.2m Nvidia shares for around $5.8bn as the company makes an "all in" bet on OpenAI. The company also sold 40.2m T-mobile shares for $9.17bn between June and September, in
[17]
Masayoshi Son trades Nvidia profits for a $30B AI spending spree
SoftBank founder Masayoshi Son divested the company's entire $5.8 billion Nvidia stake on Tuesday to focus on artificial intelligence investments. Son's career includes significant market events, such as his net worth reaching approximately $78 billion by February 2000 during the dot-com bubble.
[18]
SoftBank Just Sold Its Entire Nvidia Stake to Bet Big on OpenAI
"OpenAI is one of our key growth drivers. The fair value of our OpenAI investment rose sharply, reflecting the latest transaction valuation," said SoftBank's CFO Yoshimitsu Goto in a video to investors. SoftBank invested $10 billion in OpenAI earlier this year, as a part of a $40 billion
[19]
SoftBank announces it has sold its Nvidia shares for $5.8 billion
Japan's SoftBank Group Corp. sold the shares in October, reflecting a shift in focus to OpenAI. Japanese technology giant SoftBank said Tuesday it has sold its stake in Nvidia, raising $5.8 billion to pour into other investments. It also reported its profit nearly tripled in the first half of this
[20]
The why behind SoftBank's Nvidia stake sale
The acquisition aligns with SoftBank's ownership of Arm, creating a vertically integrated chip ecosystem. SoftBank has sold its entire $5.83 billion Nvidia stake, a move that isn't a retreat from AI but a massive strategic move. The cash is being used to fund a $6.5 billion all-cash acquisition of
[21]
SoftBank sinks 10% -- did selling Nvidia to fund a cash furnace just backfire big?
SoftBank Group Corp.'s shares dropped as much as 10% in Tokyo on Wednesday, making investors nervous about its heavy spending on artificial intelligence. On X, ZeroHedge posted: "SOFTBANK SHARES FALL AS MUCH AS 10% Maybe liquidating NVDA to invest in its biggest cash-incinerating client wasn't the
[22]
SoftBank Swaps Nvidia For OpenAI -- Is The Hardware Play Done? - NVIDIA (NASDAQ:NVDA)
SoftBank (OTCPK:SFTBY) just made one of the boldest trades in the AI era -- selling $5.8 billion worth of Nvidia Corp (NASDAQ:NVDA) shares to fund a $22.5 billion commitment to OpenAI. On paper, it looks like Masayoshi Son is ditching the shovel-maker in the middle of a gold rush. But this may be
[23]
SoftBank sells Nvidia stake for $5.8 billion to fund AI bets
SoftBank Group sold its entire stake in Nvidia for $5.83 billion to help bankroll artificial intelligence investments, even as investors question the amount of capital pouring into a technology with uncertain returns. Founder Masayoshi Son has been unwinding positions to pay for a plethora of AI
[24]
Why Did SoftBank Just Sell Its Entire Nvidia Stake?
SoftBank divested entirely from Nvidia to make room for other AI investments. SoftBank Group (SFTBF +1.06%) this week revealed it sold its entire Nvidia (NVDA +1.77%) stake in October, some 32.1 million shares for a total of $5.83 billion. SoftBank is a Japanese holding company that focuses on
[25]
SoftBank tanks 10% after $5.8-bn Nvidia stock sale
SoftBank has sold its entire stake in chip giant Nvidia for $5.8 billion. This move aims to generate cash for significant artificial intelligence investments. These include the ambitious US megaproject Stargate. SoftBank is a key investor in OpenAI, the creator of ChatGPT. The company reported a
[26]
SoftBank Offloads $15 Billion Nvidia And T-Mobile Stakes To Fund AI Push - NVIDIA (NASDAQ:NVDA), SoftBank Group (OTC:SFTBY)
SoftBank Group Corp. (OTCPK: SFTBY) has raised over $15 billion by offloading its high-profile stakes in T-Mobile US Inc. (NASDAQ:TMUS) and Nvidia Corp. (NASDAQ:NVDA), as detailed in its fiscal second-quarter earnings report. SoftBank Sells NVDA, TMUS To Fund AI Push These sales are part of a
[27]
SoftBank sells $5.8 billion Nvidia stake, sparking fears of AI market bubble - what investors must know
SoftBank Nvidia stake sale: SoftBank has divested its entire $5.8 billion stake in Nvidia. This move aims to finance Chief Executive Masayoshi Son's ambitious artificial intelligence projects. These include significant investments in OpenAI and the large-scale Stargate initiative. The sale has
[28]
SoftBank Sells $5.8B NVIDIA Stake to Invest in OpenAI and AI Infrastructure
NVIDIA Shares Fall 1.1% After SoftBank Sells its $5.8B Stake, but Market Cap Stays at $4.8T SoftBank Group Corp. disclosed in early November that it had sold its entire holding in NVIDIA, shedding around 32.1 million shares for approximately $5.83 billion. The Tokyo‑based conglomerate had built a
[29]
Japan's SoftBank says it has sold its shares in Nvidia for US$5.8 billion, turning its focus to OpenAI
TOKYO -- Japanese technology giant SoftBank said Tuesday it has sold its stake in Nvidia, raising US$5.8 billion to pour into other investments. It also reported its profit nearly tripled in the first half of this fiscal year from a year earlier. Tokyo-based SoftBank Group Corp. said it sold the
[30]
Nvidia shares edge lower after SoftBank sells entire stake in AI chip darling By Investing.com
Investing.com - Shares of Nvidia dipped in premarket U.S. trading after Japanese tech investment giant SoftBank announced that it had sold its entire stake in the artificial intelligence-darling for $5.83 billion. In an earnings statement, SoftBank said it had offloaded 32.1 million shares in
[31]
AI stock boom delivers bumper quarter for Japan's SoftBank
Japan's SoftBank Group reported a significant surge in net profit for the second quarter, more than doubling to 2.5 trillion yen. This boom is attributed to the soaring AI-related share prices, particularly its investment in OpenAI. The tech giant also sold $5.8 billion worth of Nvidia shares,
[32]
SoftBank Sells All NVIDIA Shares for $5.8B to Fund $530B AI Projects and Future Tech
SoftBank also reported that its profit nearly tripled in the first half of this fiscal year. From April to September, the company earned about 2.5 trillion yen ($16.2 billion). Its sales rose 7.7% to 3.7 trillion yen ($24 billion). These gains come from smart investments in tech companies and
[33]
Softbank Group Q2 profit blows past expectations; sells Nvidia stake for $5.8 bln By Investing.com
Investing.com-- SoftBank Group Corp. (TYO:9984) clocked a much stronger-than-expected fiscal second quarter profit on Tuesday, as the Japanese tech conglomerate continued to reap strong returns from its aggressive bets on artificial intelligence. The company said it had sold all of its shares in
[34]
SoftBank sells entire Nvidia stake for $5.8 billion in surprise move
SoftBank sold its Nvidia stake for $5.8 billion, contributing to a surprise ¥2.5 trillion net income. The company is aggressively investing in AI, with stakes in OpenAI and Oracle, and plans for a $30 billion investment in OpenAI and a $1 trillion AI manufacturing hub. Despite strong performance,
[35]
SoftBank's $5.8 billion Nvidia stake sale stirs fresh AI bubble fears
(Reuters) -SoftBank Group's $5.8 billion sale of its Nvidia stake jolted stock markets on Tuesday, stoking fears that the frenzy around artificial intelligence may have peaked, especially after recent warnings from Wall Street bank chiefs and a famed short seller. In its quarterly results, the
[36]
SoftBank Group Net Profit Doubles, Sells Nvidia Stake for $5.8 Billion -- Update
SoftBank Group reported a more than doubling in quarterly net profit, thanks to billions of dollars of gains from its OpenAI investment, and said it sold its entire stake in Nvidia for $5.8 billion last month. The Japanese technology investment company on Tuesday reported net profit of 2.502
[37]
SoftBank Group's Quarterly Net Profit Doubles on OpenAI Investment
SoftBank Group's quarterly net profit more than doubled thanks to billions of dollars of gains from its investment in OpenAI. The Japanese technology investment company on Tuesday reported net profit of 2.502 trillion yen, equivalent to $16.23 billion, for the three months ended September, up
[38]
SoftBank profit more than doubles to $16.6 billion on OpenAI gains
TOKYO (Reuters) -Japan's SoftBank Group reported on Tuesday its second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), driven by valuation gains in its holdings of OpenAI. Three analysts surveyed by LSEG had estimated on average a net profit of 207 billion yen for the
[39]
SoftBank Group posts $16.6 billion Q2 profit on OpenAI gains
TOKYO (Reuters) -Japan's SoftBank Group reported on Tuesday a net profit of 2.5 trillion yen ($16.6 billion) for the July-September quarter, its third consecutive quarter of profits. That compared with a net profit of 1.18 trillion yen in the same period of the previous year. Three analysts
[40]
SoftBank's OpenAI wager in focus as analysts upgrade share price target
TOKYO (Reuters) -Technology investor SoftBank Group reports second quarter earnings results on Tuesday in the midst of feverish investment in artificial intelligence that has sent its share price soaring. But SoftBank's belief in AI comes with risks amid growing concern of an "AI bubble" that
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SoftBank Group sold its complete Nvidia stake worth $5.8 billion in October to fund major AI investments, including OpenAI and the Stargate project. The move rattled markets and raised questions about AI bubble concerns while the company reported doubled quarterly profits.
SoftBank's Strategic Pivot from Nvidia to AI Infrastructure
SoftBank Group shocked financial markets on Tuesday by announcing it had sold its entire $5.8 billion stake in Nvidia during October, marking a dramatic strategic shift as CEO Masayoshi Son doubles down on artificial intelligence investments
1
. The Japanese conglomerate offloaded all 32.1 million Nvidia shares at approximately $181.58 per share, just 14% below the chipmaker's all-time high of $212.192
.
Source: Analytics Insight
The sale represents SoftBank's second complete exit from Nvidia, following a costly 2019 decision to sell a $4 billion stake for $3.6 billion—shares that would now be worth more than $150 billion
1
. This time, however, Son appears to be timing the market more strategically, exiting near peak valuations to fund his ambitious AI infrastructure plans.Market Reaction and Bubble Concerns
The announcement immediately rattled stock markets, with Nvidia shares dropping more than 2% in early trading and weighing on the broader S&P 500 index
3
. The timing has intensified concerns about an AI bubble, particularly following recent warnings from Wall Street bank chiefs at Morgan Stanley and Goldman Sachs about potential market drawdowns3
.Adding to the jitters, hedge fund manager Michael Burry—famous for predicting the 2008 financial crisis—has recently bet against both Nvidia and Palantir
3
. Several analysts interpreted SoftBank's move as a signal that Son sees the blistering rally that turned Nvidia into the first $5 trillion company cooling after a more than 1,200% surge over three years.Funding Major AI Initiatives
The proceeds from the Nvidia sale, combined with approximately $9.2 billion raised from selling T-Mobile shares, will fund SoftBank's expanding AI portfolio
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. Most notably, the company is investing up to $40 billion in OpenAI and participating in the $500 billion Stargate project—a next-generation AI data center initiative co-developed by OpenAI and Oracle3
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Source: Market Screener
SoftBank CFO Yoshimitsu Goto confirmed that the OpenAI investment was "very large" and required the company to use "existing assets to finance new investments"
2
. Last month, SoftBank reportedly approved its final tranche of funding to complete its $30 billion total investment in OpenAI, contingent on the AI startup's restructuring into a for-profit entity by December 315
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Record Financial Performance
Despite market concerns, SoftBank reported exceptional financial results for its fiscal second quarter. Net profit more than doubled to ¥2.5 trillion ($16.2 billion), far exceeding analyst expectations of ¥207 billion
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. The Vision Fund segment recorded a remarkable $19 billion gain, driven primarily by rising valuations of AI companies including OpenAI and PayPay5
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Source: Fast Company
SoftBank's stock has more than doubled this year to over ¥22,000, making Son Japan's richest man
4
. The company announced a four-to-one stock split effective January 1 to make shares "more accessible to investors and further expand its investor base"4
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