SoftBank Exits Nvidia to Fund Massive AI Push
SoftBank has officially sold its entire stake in Nvidia (NVDA) for $5.83 billion, marking one of its biggest divestments this year as it doubles down on artificial intelligence.
The Japanese conglomerate disclosed the sale of 32.1 million Nvidia shares in October, alongside a partial $9.17 billion sale of T-Mobile stock. The move is part of a broader capital rotation strategy to fund $22.5 billion in new investments — most notably in OpenAI, the maker of ChatGPT.
SoftBank said the proceeds will also support acquisitions in robotics and AI infrastructure, including the purchase of ABB’s robotics unit. The firm emphasized that the Nvidia exit is not tied to concerns about valuations but rather part of its “asset monetization” approach to unlock liquidity for new ventures.
Deep AI Ties Remain Despite Nvidia Exit
Though the Nvidia sale drew attention, SoftBank remains firmly embedded in the AI ecosystem that Nvidia powers. The company is a key player in AI infrastructure projects, including the $500 billion Stargate data center initiative in the U.S., which relies on Nvidia’s high-performance chips.
SoftBank’s Vision Fund was among Nvidia’s early backers, holding a $4 billion stake in 2017 before exiting in 2019. Its latest divestment simply marks another strategic pivot to fund the next generation of AI growth — from chips and computing to robotics and language models.
Analysts at New Street Research said the move reflects SoftBank’s short-term funding needs, not a shift in its long-term AI outlook. The firm is deploying more capital this quarter than in the past two years combined, underscoring the scale of its current expansion.
Vision Fund Surges on AI Windfall
SoftBank’s Vision Fund posted a $19 billion gain in its latest quarter, helping the conglomerate double its profit year over year. The fund has aggressively increased exposure to artificial intelligence, investing in everything from semiconductors and model developers to robotics firms.
SoftBank CFO Yoshimitsu Goto attributed much of that success to the firm’s initial 2023 investment in OpenAI, now valued at over $500 billion. Following its recapitalization, SoftBank’s ownership in OpenAI is set to rise from 4% to 11%, with room to expand further depending on future funding rounds.
While shares of SoftBank have recently dipped amid global concerns over an AI valuation bubble, the company remains committed to long-term exposure in the sector. A newly announced four-for-one stock split aims to make shares more accessible to investors as it continues its pivot toward AI leadership.
WSA Take
SoftBank’s Nvidia exit isn’t retreat — it’s reallocation. The firm is recycling capital from mature AI bets into next-wave infrastructure and model developers like OpenAI. With $22.5 billion earmarked for AI expansion and an 11% stake in ChatGPT’s parent, SoftBank is positioning itself at the center of the AI-industrial complex.
Still, the pace of its capital deployment — the most aggressive in years — leaves little margin for error if the AI spending cycle cools or valuations compress. Investors will be watching whether its reinvestments deliver sustainable growth or simply amplify exposure to a maturing AI trade.
Read our recent coverage on CoreWeave’s revenue forecast cut amid AI data center delays.
Explore more insights at the Wall Street Access homepage.
Disclaimer:
Wall Street Access does not work with or receive compensation from any public companies mentioned. Content is for informational and educational purposes only.
