SoftBank Exits Nvidia, Cashing Out $5.83 Billion Stake for OpenAI Investment

Japanese conglomerate SoftBank has sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion, as the company pivots to bolster its investment in artificial intelligence firm OpenAI.

The firm disclosed in its earnings statement today that it sold 32.1 million Nvidia shares in October, alongside a $9.17 billion sale of part of its T-Mobile holdings. These stake sales, combined with a $19 billion gain from SoftBank’s Vision Fund, resulted in a doubling of the company’s profit in its fiscal second quarter. This move signals a significant shift in SoftBank’s portfolio strategy, prioritizing its “all in” bet on OpenAI, the creator of ChatGPT.

While this exit may surprise some, SoftBank previously held and sold a stake in Nvidia, reportedly amassing a $4 billion position in 2017 before divesting in January 2019. Despite the recent sale, SoftBank remains connected to Nvidia through various AI ventures, including the ambitious $500 billion Stargate project focused on developing data centers in the United States. The company’s Vision Fund has been aggressively investing across the AI landscape, from chip technology to large language models and robotics – a sector experiencing rapid growth and attracting substantial investment, as detailed by Statista.

SoftBank’s Chief Financial Officer, Yoshimitsu Goto, attributed the strong financial results to the company’s early investment in OpenAI. “The reason we were able to have this result is because of September last year, that was the first time we invested in OpenAI,” Goto said during an investor presentation, adding that OpenAI’s $500 billion valuation represents one of the largest globally based on fair value. You can learn more about SoftBank’s Vision Fund investments on the company’s website.

Officials indicated they will continue to evaluate opportunities within the AI sector and refine their investment strategy accordingly.