SoftBank's Son says he 'was crying' over $5.8B Nvidia stake sale to fund AI investments

SoftBank's Emotional Departure from Nvidia

SoftBank founder Masayoshi Son has openly acknowledged the difficulty of parting with the company's entire Nvidia stake, describing the decision as one that brought him to tears. Speaking at the FII Priority Asia forum in Tokyo on Monday, Son addressed the surprise November disclosure that SoftBank had sold its complete holding in the world's most valuable chipmaker for $5.83 billion 1

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. "I don't want to sell a single share. I just had more need for money to invest in OpenAI and other projects," Son explained during his talk. "I was crying to sell Nvidia shares" . The billionaire made clear that if SoftBank had unlimited capital, he would have retained every share of the semiconductor giant, which he deeply respects 3

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Strategic Move to Fund AI Investments

The Nvidia stake sale wasn't driven by doubts about the chipmaker's future but by SoftBank's urgent need to raise capital for AI projects that demand enormous upfront investment 4

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. SoftBank has aggressively expanded its AI ambitions throughout the year, pouring resources into ambitious hardware and infrastructure initiatives. The company is heavily involved in the Stargate Project for data center construction and recently acquired U.S. chip design firm Ampere Computing for $6.5 billion . These ventures require massive capital outlays long before any returns materialize, forcing SoftBank to liquidate valuable assets to fund its vision 3

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Doubling Down on Investment in OpenAI

At the center of SoftBank's strategy sits OpenAI, the ChatGPT maker that Son has positioned as the cornerstone of the company's next phase. Earlier this year, Son declared that SoftBank is "all in" on OpenAI and predicted the AI startup could eventually become the world's most valuable company . The company has promised to funnel more than $30 billion into OpenAI by year's end and could "potentially" increase this investment depending on the startup's performance and valuation in future funding rounds . This conviction has already delivered financial results, with SoftBank reporting that second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), driven by valuation gains in its OpenAI holdings .

Dismissing the AI Investment Bubble Narrative

Son's comments come as growing fears about a potential AI investment bubble rattle markets, with some investors questioning whether sky-high valuations for AI companies are sustainable. The SoftBank founder pushed back forcefully against these concerns during his Monday talk, arguing that those who warn of an AI bubble are "not smart enough" . Son predicted that super artificial intelligence and AI robotics will generate at least 10% of global GDP over the long term, easily justifying the trillions of dollars currently flowing into the technology 4

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. "Where is the bubble?" he asked, suggesting that if AI captures 10% of global GDP, it could generate tens of trillions of dollars .

Market Concerns and Contrarian Voices

Despite Son's optimism, SoftBank's stock has slumped almost 40% in U.S. trading since late October as investors grow uneasy about the scale of its AI spending 3

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. Much of that spending has been funneled into ambitious hardware and infrastructure projects that demand enormous capital outlays before any payoff materializes. Short-seller Jim Chanos, famous for his prescient Enron call, has warned of potential debt defaults in the growing AI cloud computing space. "Business models like the neoclouds, a lot of the AI companies themselves ... are just loss-making enterprises right now," Chanos told Yahoo Finance, adding that without changes, "there's going to be debt defaults on these things" 3

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Vision for Artificial General Intelligence and Beyond

Son's aggressive posture reflects his broader vision for artificial general intelligence (AGI) and artificial superintelligence (ASI). The billionaire, currently Japan's second wealthiest person with an estimated net worth of $52.8 billion, predicted that AI could become 10,000 to 100,000 times smarter than humans in the coming decades . "Nothing is actually stopping the process to make AGI and ASI happen," Son stated. "The funding is coming, chips are coming, models are evolving -- whole world is waiting." Today, SoftBank's Vision Funds hold stakes in more than 400 AI-related companies, demonstrating the scale of its commitment to the sector . While Son remains bullish on generative AI globally, he was critical of Japan's conservative approach, warning "Wake up, Japan" and noting that "the biggest opportunity is still in the United States" .