SoftBank Sells Entire Nvidia Stake to Fuel Expanding AI Ambitions

SoftBank Group has sold its entire stake in Nvidia, raising approximately $5.83 billion as part of a broader strategy to fund major new investments in artificial intelligence, including a multibillion-dollar commitment to OpenAI.

The Japanese conglomerate disclosed that it sold 32.1 million Nvidia shares in October, alongside divesting a $9.2 billion stake in T-Mobile and taking a margin loan against chip designer Arm. According to the company, these moves form part of what it calls a "strategic asset monetization," aimed at reallocating capital toward emerging AI infrastructure projects.

"This should not be seen as a cautious or negative stance on Nvidia," said Rolf Bulk of New Street Research, noting that SoftBank requires over $30 billion for new investments this quarter, including an expanded stake in OpenAI and a potential buyout of chip firm Ampere.

Despite the announcement, Nvidia's shares slipped only around 2%, a modest reaction given its roughly $5 trillion market capitalization. Analysts observed that SoftBank's holding was relatively small in scale. "It is never going to be a fun thing to watch one of your most high-profile investors sell all their shares," said FT analyst John Foley, "but this stake in Nvidia was very small compared with Nvidia itself, which is very big."

Market observers say the sale highlights growing unease over the pace of the AI rally. Nvidia's valuation has surged more than 1,200% in three years, prompting speculation that the sector could be entering bubble territory. Recent commentary from Morgan Stanley, Goldman Sachs, and investor Michael Burry—who has reportedly taken short positions against Nvidia and Palantir—has reinforced that caution.

Not all analysts agree on Son's timing. C. J. Muse of Cantor Fitzgerald remarked, "Cannot say Masayoshi Son has been great with his trading of Nvidia shares," recalling that SoftBank's earlier 2019 divestment missed out on tens of billions in potential gains.

The proceeds from the Nvidia sale are being directed into OpenAI and the planned "Stargate" data center project—a massive infrastructure expansion across the United States that could reshape the future of AI computing. SoftBank's stake in OpenAI is expected to rise from 4% to 11%, with room for further increases.

SoftBank CFO Yoshimitsu Goto described the shift as part of a deliberate effort to strengthen finances while deepening exposure to artificial intelligence. The company's Vision Fund has reportedly recorded a $19 billion quarterly gain, much of it from AI-related investments.

However, questions linger over valuations in the sector. OpenAI's worth has already climbed to $500 billion, and reports suggest it could pursue a $1 trillion IPO as early as next year.

SoftBank's strategy once again underscores the fine line between visionary investing and high-stakes risk-taking. The group's history includes both landmark successes—such as its early bet on Alibaba—and high-profile setbacks like WeWork. For now, its shares have doubled in value this year, supported by enthusiasm for AI, even as markets weigh how long the momentum can last.