In a decisive strategic pivot, SoftBank Group has liquidated its entire stake in Nvidia, generating $5.8 billion to further fund its ambitious push into artificial intelligence, with OpenAI at the center of this massive bet.
Cashing Out to Double Down on AI
SoftBank confirmed the sale of 32.1 million Nvidia shares in October, a move that provided crucial capital for its growing list of commitments. The company’s Chief Financial Officer, Yoshimitsu Goto, was clear on the rationale, stating, “This year our investment in OpenAI is large, more than $30 billion needs to be made. For that, we do need to divest our existing assets”. He emphasized that the decision was “nothing to do with Nvidia itself”, framing it purely as a necessary step in the company’s cycle of “divesting and reinvesting”.
This is not the first time SoftBank has cashed out of the chipmaker; its 2019 sale of a $4 billion stake has become a noted cautionary tale, as those shares would now be worth over $150 billion. Alongside the Nvidia sale, SoftBank also sold part of its stake in T-Mobile for $9.17 billion, building a significant war chest for its AI ambitions.
The OpenAI Centerpiece and the Stargate Vision
The capital from these sales is being channeled into a breathtakingly large investment in OpenAI. SoftBank is in the process of committing over $30 billion to the ChatGPT creator, which would increase its ownership stake from 4% to 11%. This investment comes as OpenAI’s valuation has skyrocketed, reaching $500 billion and solidifying its status as the world’s most valuable private company.
This financial commitment is part of a broader, overarching vision. SoftBank’s founder, Masayoshi Son, is a key player in the Stargate Project—a $500 billion initiative announced with President Donald Trump, OpenAI’s Sam Altman, and Oracle’s Larry Ellison to develop massive AI infrastructure across the United States. While the project’s rollout has faced some delays, the first Stargate data center in Abilene, Texas, has begun operations, with several more planned.
A Calculated Bet with High Stakes
For market participants, SoftBank’s move is a powerful signal of conviction in the application layer of AI. However, it also concentrates risk and has stirred concerns about an AI bubble. The sale itself had a immediate market impact, causing Nvidia shares to dip about 2%. More profoundly, it highlights the immense capital requirements of leading the AI race and shows how major investors are reallocating resources from hardware enablers like Nvidia to platform players like OpenAI.
