- SoftBank sold its entire 32.1 million Nvidia shares for $5.83 billion
- The sale funded $22.5 billion investment into OpenAI and AI tools
- 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 billion, ending a position that dates back to Nvidia’s early rise as the chip industry’s leading AI supplier.
Nvidia shares slipped roughly 2% after the sale, though analysts say the move may have less to do with doubts about Nvidia and more with SoftBank’s urgent need for liquidity.
A strategic move – or something more?
New Street Research analyst Rolf Bulk noted the sale “should not be seen” as a lack of confidence in Nvidia but rather a practical decision.
SoftBank reportedly needs at least $30.5 billion for new investments in the last quarter of the year, with $22.5 billion allocated to OpenAI and another $6.5 billion to Ampere.
The total represents more investment in one quarter than in the previous two years combined.
“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” said SoftBank’s chief financial officer, Yoshimitsu Goto, during an investor presentation.
“So through those options and tools we make sure that we are ready for funding in a very safe manner”
The company added that the stake sales were part of its broader strategy for “asset monetization.”
This suggests a strategic shift toward broader artificial intelligence ventures rather than an exit from the AI space itself.
Former Intel CEO Pat Gelsinger has warned that the AI sector sits in bubble territory, though he expects any correction to unfold gradually.
Also, recent financial disclosures show Michael Burry’s Scion Asset Management has opened large option positions tied to Nvidia and Palantir.
The notional value of these positions exceeds $1 billion, signaling an apparent bet on downside risk in the ongoing AI rally.
But SoftBank also sold part of its stake in T-Mobile for $9.17 billion and raised funds through a margin loan on its ARM Holdings shares.
Insiders claim that these asset sales are simply “sources of cash” for new acquisitions, including ABB’s robotics business.
These sales and SoftBank’s $19 billion gain this quarter from the Vision Fund bolstered its growing portfolio of AI-focused holdings.
“The reason we were able to have this result is because of September last year, which was the first time we invested in OpenAI,” said SoftBank’s Goto.
SoftBank remains deeply linked to Nvidia through projects like the $500 billion Stargate data center initiative, which still depends on Nvidia’s GPUs and AI tools.
Via CNBC
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