SoftBank offloads entire $5.83 billion Nvidia stakes to raise cash for new AI investments

SoftBank sold its entire holding in Nvidia for $5.83 billion in October, according to the earnings announcement shared Tuesday.

The sale included 32.1 million Nvidia shares, and it came as the Japan‑based group prepared new large‑scale spending focused on OpenAI and other artificial intelligence companies.

SoftBank also reported that it sold part of its T‑Mobile stake for $9.17 billion in the same period. The decision was not framed as backing away from Nvidia’s role in the AI industry, but rather as securing funding for the company’s next chapter of investment.

Chief Financial Officer Yoshimitsu Goto said during the investor briefing that SoftBank wants to give investors room to invest while still keeping a strong financial position. Yoshimitsu said the firm uses these sales to make sure it is “ready for funding in a very safe manner,” adding that the sale fits into its broader plan of “asset monetization,” meaning SoftBank is intentionally freeing capital from past stakes to move into new ones.

Nvidia’s stock fell 0.95% in premarket trade Tuesday after the update, though the company did not express any negative view on Nvidia’s business.

SoftBank directs funds toward OpenAI and Ampere

This is not the first time SoftBank has exited Nvidia. The Vision Fund first bought around $4 billion worth of Nvidia stock in 2017, then exited the position in January 2019.

Even after the latest sale, the two companies are tied through shared AI‑related projects, including involvement in the Stargate data center buildout in the United States, a project valued at $500 billion that depends on Nvidia technology.

Equity analyst Rolf Bulk of New Street Research said the sale should not be viewed as a sign of caution about Nvidia itself. Rolf said the company needs at least $30.5 billion for investment commitments between October and December, including $22.5 billion designated for OpenAI and $6.5 billion for Ampere, another AI computing firm.

Rolf noted that this amount is more capital in one quarter than SoftBank invested in total over the past two years combined.

Dan Baker, an analyst at Morningstar, said SoftBank emphasized that the Nvidia sale was not based on any change in outlook on Nvidia. Dan said the money is needed to fund other AI companies in the pipeline, not because the group sees any weakness in Nvidia.

The company also made clear that its broader business network still relies on Nvidia’s chips and infrastructure partnerships.

Vision Fund reports $19 billion gain and company profit doubles

The Vision Fund reported a $19 billion gain in the fiscal second quarter. That gain helped SoftBank double its quarterly profit. The fund has been active across the AI stack: semiconductors, large language model development groups, and robotics companies.

Yoshimitsu said the fund’s result ties back to its first investment in OpenAI in September last year, before OpenAI’s valuation increased again.

Yoshimitsu also said that OpenAI’s estimated $500 billion valuation places it among the highest‑valued firms in the world based on fair value estimates.

Company shares have fallen over the past week, as concerns around a possible AI bubble have moved across markets. Yoshimitsu acknowledged that movement, saying the company’s stock price has been “going up and down dynamically” recently.

He said the new four‑for‑one stock split was introduced to create more investment opportunities for shareholders, stating that the company wants more room for investors to enter and trade.

SoftBank said the moves taken this quarter are meant to support continued access to the growing AI market, while keeping enough liquidity on hand to operate without taking on unnecessary risk.

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