SoftBank Exits Nvidia Stake, Redirects Focus to OpenAI and AI Expansion
SoftBank Group Corp. has sold its entire stake in Nvidia for $5.83 billion, signaling a strategic pivot toward OpenAI and artificial intelligence ventures. The Tokyo-based conglomerate also reported that its profit nearly tripled in the first half of its fiscal year.
SoftBank Profits Surge as AI Focus Deepens
Japanese technology powerhouse SoftBank Group Corp. announced on Tuesday that it sold its Nvidia shares in October for $5.83 billion, marking the end of its investment in the Silicon Valley chipmaker. The sale comes as SoftBank shifts its attention and capital toward OpenAI, a company in which it has invested tens of billions of dollars.
The move coincided with impressive financial results — SoftBank’s profit for April through September surged nearly threefold to 2.5 trillion yen (about $13 billion), with sales rising 7.7% year-on-year to 3.7 trillion yen ($24 billion).
SoftBank’s performance has historically fluctuated due to its broad portfolio managed through its Vision Funds, which have recently seen a turnaround thanks to AI-driven market growth.
Strategic Pivot Toward OpenAI and “Stargate” Project
SoftBank’s founder and CEO Masayoshi Son has been aggressively repositioning the company toward artificial intelligence. Earlier this year, Son joined Donald Trump, OpenAI’s Sam Altman, and Oracle co-founder Larry Ellison to announce a landmark $500 billion AI infrastructure project called “Stargate.”
SoftBank’s investment in OpenAI strengthens this shift, as the two companies plan to expand AI services across Japan and beyond.
“The sale of Nvidia shares frees capital to fund the next phase of AI innovation,” a SoftBank spokesperson said.
Nvidia’s Meteoric Rise and SoftBank’s Profitable Exit
Nvidia recently became the world’s first $5 trillion company, only months after surpassing the $4 trillion mark — a surge driven by explosive demand for AI chips. The timing of SoftBank’s sale likely yielded substantial gains.
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Despite the divestment, SoftBank maintains strong ties to Nvidia through various AI-related ventures and portfolio companies that rely on Nvidia technology.
SoftBank also continues to hold investments in Arm Holdings and Taiwan Semiconductor Manufacturing Co. (TSMC) — two leading players in the semiconductor industry benefiting from AI advancements.
Stock Market Reaction and Broader Implications
SoftBank’s shares have nearly doubled in value over the past year, rising another 2% on Tuesday following the announcement. Nvidia shares dipped 1.3% in premarket trading, after a 5.8% jump on Monday.
Analysts say the sale underscores SoftBank’s strategy of “selling high” while redeploying capital toward future growth sectors. “Son’s vision is to position SoftBank as a central player in the AI revolution,” said Tokyo-based market analyst Hiroshi Yamamoto.
The company’s renewed focus on OpenAI and AI infrastructure aligns with Japan’s national ambitions to accelerate technological innovation and reduce dependence on Western cloud and chip providers.
Outlook
With a bolstered balance sheet, soaring profits, and a deepening partnership with OpenAI, SoftBank appears poised to play a pivotal role in the next phase of global AI development. The company’s divestment from Nvidia marks not a retreat from AI, but rather a recalibration of its strategy toward direct influence and innovation in the field.
Source: AP News – Japan’s SoftBank says it has sold its shares in Nvidia for $5.8 billion, turning its focus to OpenAI
