SoftBank Sells $5.8 Billion Nvidia Stake to Fund Massive OpenAI Investments
Tech giant offloads entire Nvidia position to pay for soaring A.I. expenses
SoftBank has fully sold its $5.8 billion stake in Nvidia to help finance its rapidly expanding artificial intelligence investments, the company confirmed in its quarterly earnings report on Tuesday. The move comes as concerns grow that the A.I. stock boom may be overheating.
SoftBank Bets Big on A.I.—and Pays the Price
SoftBank has positioned A.I. as its future.
To fund that strategy, it is pouring enormous sums into industry leaders, including OpenAI.
- SoftBank plans to invest $30 billion in OpenAI.
- NVIDIA has pledged up to $100 billion in OpenAI.
- OpenAI plans to buy huge volumes of Nvidia processors in return.
These interconnected A.I. deals are driving record spending across the tech industry.
Investor Concerns Rise as SoftBank Exits Nvidia
SoftBank’s complete exit from Nvidia—a key A.I. stock—has sparked fresh worries among investors who fear the A.I. rally may be overextended.
On Monday, hedge fund manager Michael Burry, known for “The Big Short,” publicly questioned how tech giants account for their massive chip purchases.
SoftBank: “Sale Not About Nvidia”
SoftBank’s CFO, Yoshimitsu Goto, stressed that the sale was practical, not strategic.
“We do need to divest our existing portfolio… It’s nothing to do with Nvidia itself,” he told analysts.
OpenAI Reorganization Triggers SoftBank’s $30B Payment
OpenAI’s recent shift into a for-profit structure pushed SoftBank to deliver its full $30 billion commitment.
The purchase highlights the immense financial requirements of CEO Masayoshi Son’s long-term A.I. ambitions.
Son has repeatedly said: “I want SoftBank to lead the A.I. revolution.”
Massive U.S. Investments Ahead
SoftBank’s A.I. push includes:
- Joining Stargate, a mega-data center project with OpenAI and Oracle
- A planned $100 billion investment across various U.S.-based technology projects
- Heavy borrowing and asset sales to raise capital
The strategy requires selling older holdings and taking on significant debt.
Profits Surge Despite High Costs
Even with enormous A.I. spending, some bets are already paying off.
OpenAI’s soaring valuation helped SoftBank more than double its profit last quarter to 2.5 trillion yen ($16.2 billion).
History Repeats: SoftBank Once Sold Nvidia Too Early
SoftBank’s Nvidia sale reminded investors of its 2019 exit—just before Nvidia stock skyrocketed on the success of A.I. technologies like ChatGPT.
Summary
SoftBank has sold its entire $5.8B Nvidia stake to fund huge A.I. investments, especially its $30B commitment to OpenAI. The decision has sparked investor concerns about the A.I. market’s rapid rise, even as SoftBank pushes ahead with a $100B U.S. investment plan and ambitious global data center projects.
Original News Credit: https://www.nytimes.com/2025/11/11/business/dealbook/softbank-nvidia-divest.html
