Japan's second biggest company sells its entire stake in world's most-valuable company Nvidia; and one of the reasons is ChatGPT-maker OpenAI
SoftBank Group said that it has sold its entire stake in U.S. chipmaker Nvidia, raising $5.83 billion as part of its push to finance an “all in” investment in ChatGPT maker OpenAI . In its quarterly earnings report, the Japanese conglomerate disclosed that it sold 32.1 million Nvidia shares in October. SoftBank is putting $30 billion into the ChatGPT maker this year after its recent restructuring and has an 11 per cent stake.
“We want to provide a lot of investment opportunities for investors while maintaining financial strength,” said Yoshimitsu Goto, SoftBank’s chief financial officer, during an investor presentation. “Through those options and tools, we make sure we are ready for funding in a very safe manner.” He added that the sales were part of the company’s broader strategy of “asset monetization.”
According to a person familiar with the matter cited by CNBC, proceeds from the Nvidia and T-Mobile share sales — along with a margin loan on SoftBank’s holding in Arm — will serve as “sources of cash” to fund SoftBank’s planned $22.5 billion investment in OpenAI. The funds will also support other initiatives, including the acquisition of ABB’s robotics unit.
These results come just three years after SoftBank unveiled the biggest loss in its history.
While the move surprised some investors, it marks the second time SoftBank has exited Nvidia. Its Vision Fund first invested about $4 billion in the chipmaker in 2017 before fully divesting in 2019. Incidentally, Masa Son, Softbank’s founder, had said last year that he sees Nvidia as his missed golden opportunity, after Softbank sold its stake in 2019, before the share price jump. As he put it: “The fish that got away was big.” Till 2019, SoftBank was the biggest shareholder of Nvidia, owning 4.9% of shares.
What analysts said on Nvidia sale
Analysts said the sale reflects SoftBank’s capital reallocation rather than a shift in sentiment toward Nvidia.
“This should not be seen as a cautious or negative stance on Nvidia,” said Rolf Bulk, equity research analyst at New Street Research. “SoftBank needs at least $30.5 billion of capital for investments in the October–December quarter, including $22.5 billion for OpenAI and $6.5 billion for Ampere — more in a single quarter than it invested in the previous two years combined.”
SoftBank’s sweeping repositioning underscores founder Masayoshi Son’s renewed focus on artificial intelligence, as the group looks to cement its role at the center of the global AI ecosystem.
“We want to provide a lot of investment opportunities for investors while maintaining financial strength,” said Yoshimitsu Goto, SoftBank’s chief financial officer, during an investor presentation. “Through those options and tools, we make sure we are ready for funding in a very safe manner.” He added that the sales were part of the company’s broader strategy of “asset monetization.”
According to a person familiar with the matter cited by CNBC, proceeds from the Nvidia and T-Mobile share sales — along with a margin loan on SoftBank’s holding in Arm — will serve as “sources of cash” to fund SoftBank’s planned $22.5 billion investment in OpenAI. The funds will also support other initiatives, including the acquisition of ABB’s robotics unit.
These results come just three years after SoftBank unveiled the biggest loss in its history.
While the move surprised some investors, it marks the second time SoftBank has exited Nvidia. Its Vision Fund first invested about $4 billion in the chipmaker in 2017 before fully divesting in 2019. Incidentally, Masa Son, Softbank’s founder, had said last year that he sees Nvidia as his missed golden opportunity, after Softbank sold its stake in 2019, before the share price jump. As he put it: “The fish that got away was big.” Till 2019, SoftBank was the biggest shareholder of Nvidia, owning 4.9% of shares.
What analysts said on Nvidia sale
Analysts said the sale reflects SoftBank’s capital reallocation rather than a shift in sentiment toward Nvidia.
“This should not be seen as a cautious or negative stance on Nvidia,” said Rolf Bulk, equity research analyst at New Street Research. “SoftBank needs at least $30.5 billion of capital for investments in the October–December quarter, including $22.5 billion for OpenAI and $6.5 billion for Ampere — more in a single quarter than it invested in the previous two years combined.”
SoftBank’s sweeping repositioning underscores founder Masayoshi Son’s renewed focus on artificial intelligence, as the group looks to cement its role at the center of the global AI ecosystem.
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