SoftBank Group has divested its entire $5.8 billion stake in Nvidia, a transaction disclosed on Tuesday, signaling a strategic pivot to intensify its investments in artificial intelligence (AI). The Japanese technology conglomerate is reallocating capital to support anticipated commitments, including a reported $30 billion allocation to OpenAI and potential participation in a $1 trillion AI manufacturing hub planned for Arizona, according to sources familiar with the company's strategy.
The sale encompassed 32.1 million Nvidia shares, executed at an approximate price of $181.58 per share. This positioned the exit approximately 14% below Nvidia’s recorded all-time high of $212.19. Market reaction to the disclosure saw Nvidia shares decline by nearly 3%. Analysts attributed the sale to SoftBank's requirements for capital to fund its AI ambitions rather than a negative assessment of Nvidia's market position or future prospects.
This divestiture marks SoftBank's second complete exit from Nvidia. A previous transaction in 2019 involved SoftBank selling a $4 billion stake for $3.6 billion; those shares would now reportedly be valued in excess of $150 billion. The current move aligns with SoftBank founder Masayoshi Son's established pattern of making significant, often high-risk, investments in emerging technologies.
Son's investment history includes an early $20 million stake in Alibaba in 2000, which subsequently grew to an estimated $150 billion by 2020. Conversely, the firm has also encountered substantial losses from other large investments, such as its involvements with Uber and WeWork. SoftBank reported $11.5 billion in equity losses and an additional $2.2 billion in debt related to its WeWork investment, a situation Son reportedly described as "a stain on my life." The current reallocation of capital underscores SoftBank's intensified strategic focus on the development and integration of AI technologies, aiming to capture leadership in industrial AI applications.
