SoftBank has sold its entire stake in U.S. chipmaker Nvidia for US$5.83 billion, according to a recent statement. The Japanese conglomerate is looking to capitalise on its substantial investment in OpenAI, the creator of ChatGPT. SoftBank disclosed the sale of 32.1 million Nvidia shares occurred in October, alongside the partial sale of its T-Mobile stake for US$9.17 billion.
According to SoftBank’s chief financial officer, Yoshimitsu Goto, these sales are part of the firm’s strategy for ‘asset monetisation’, ensuring the company remains financially strong and can provide investment opportunities for investors. SoftBank is a global technology investor known for its investments in artificial intelligence, robotics, and internet companies. SoftBank’s Vision Fund aims to drive the information revolution by investing in the technologies and businesses of the future.
Sources familiar with the matter report the proceeds from the Nvidia and T-Mobile sales, combined with a margin loan on SoftBank’s holding in Arm, will fund the US$22.5 billion investment in OpenAI and other projects such as the acquisition of ABB’s robotics unit. Despite the sale, SoftBank’s business interests remain heavily intertwined with Nvidia’s technology, including its involvement in the US$500 billion Stargate project for U.S. data centres.
Analysts suggest the sale does not reflect a negative view of Nvidia, but rather a need for capital to fund significant investments. Rolf Bulk, equity research analyst at New Street Research, noted SoftBank requires substantial capital for investments in the current quarter, including OpenAI and Ampere. Morningstar’s Dan Baker echoed this sentiment, stating SoftBank is using the funds to invest in other AI-related companies, which does not signify a shift in strategy.
