SoftBank Sells Entire Nvidia Stake to Focus on AI Investments
Tokyo, Tuesday, 11 November 2025.
SoftBank sold its Nvidia shares for $5.83 billion to invest in AI, including a $500 billion Stargate project. This move highlights SoftBank’s strategic shift towards AI-driven growth.
Strategic Shift Towards AI Investments
In a strategic pivot, SoftBank Group Corp. (OTCPK:SFTBY) has sold its entire stake in Nvidia Corporation (NVDA) for $5.83 billion, executed in October 2025. This move is part of a broader strategy to reallocate resources towards artificial intelligence, as evidenced by its significant investments in OpenAI, the creator of ChatGPT. This decision aligns with SoftBank’s ongoing commitment to AI-driven growth, as highlighted by its involvement in the ambitious $500 billion Stargate project, announced earlier this year [1][2][3].
Financial Performance and Market Dynamics
SoftBank’s divestment from Nvidia comes during a period of remarkable financial performance. The company’s profit for the first half of this fiscal year nearly tripled compared to the prior year, reaching approximately ¥2.5 trillion ($13 billion). This surge is largely attributed to the rising valuation of OpenAI, which SoftBank has heavily invested in. The decision to sell Nvidia shares is part of a broader asset monetization strategy, allowing SoftBank to channel funds into ventures with potentially higher returns amid the AI boom [2][3][5].
Market Reactions and Future Plans
The market has responded dynamically to these developments. Nvidia shares experienced fluctuations, reflecting broader market sentiments about the AI sector’s volatility. Meanwhile, SoftBank’s stock has shown robust growth, nearly doubling in value over the past year. This reflects investor confidence in SoftBank’s strategic focus on AI and its ability to capitalize on emerging opportunities. However, concerns about a potential ‘AI bubble’ persist, with some analysts cautioning against the rapid escalation of valuations in the sector [3][4][6].
Long-term Vision and Implications
SoftBank’s founder, Masayoshi Son, emphasizes the importance of investing in transformative technologies, viewing the risk of not investing as greater than potential losses. This philosophy underpins SoftBank’s aggressive pursuit of AI and related technologies. The company’s involvement in projects like Stargate and plans to invest heavily in AI infrastructure signal a long-term vision that extends beyond immediate financial gains. As SoftBank navigates this rapidly evolving landscape, its decisions will likely have significant implications for the tech industry and global market dynamics [6][4][5].