SoftBank Sells Nvidia Stake, Eyes $30B OpenAI Push

SoftBank Group Corp. has sold its entire stake in Nvidia Corp., netting a remarkable $5.8 billion, signaling a strategic pivot toward artificial intelligence investments. The move comes as founder Masayoshi Son aggressively positions the company at the center of the AI boom.

By the end of March, SoftBank had increased its Nvidia holdings to around $3 billion. The sale, combined with returns from its Vision Fund startup investments, helped the Tokyo-based conglomerate report an unexpected net income of ¥2.5 trillion ($16.2 billion) in its fiscal second quarter — vastly exceeding analyst expectations of ¥418.2 billion.

Alongside this financial update, SoftBank announced a 4-for-1 stock split, effective January 1, aiming to improve liquidity and shareholder appeal.

Son’s company now boasts stakes in some of the AI sector’s most influential players, including OpenAI and Oracle Corp. These investments have not only boosted SoftBank’s paper gains but also fueled a 78% surge in its share price over the three months ending September — its best quarterly performance since 2005.

SoftBank is doubling down on AI and chip-related ventures. Plans under discussion include a $30 billion investment in OpenAI, collaboration with Taiwan Semiconductor Manufacturing Co., and participation in a $1 trillion AI manufacturing hub in Arizona. The company also explored acquiring US chipmaker Marvell Technology earlier this year and is eyeing Ampere Computing LLC for a $6.5 billion deal.

While the company’s strategy promises strong growth potential, challenges remain in financing these ambitious projects. Analysts note concerns around high valuations in the AI sector and the long-term returns on massive data center and chip infrastructure investments.

Investors who capitalized on SoftBank’s early AI bets have already seen substantial returns, as the stock more than doubled over recent months. With the company pivoting toward a new phase of large-scale investments, the market now watches closely how Son balances these ambitious plans with prudent financial management.