According to Silicon Republic, Japanese investment giant Softbank has sold its entire 31.2 million Nvidia share position for approximately $5.8 billion between June and September. The company also divested 40.2 million T-Mobile shares for $9.17 billion and partially sold Deutsche Telekom shares for $2.37 billion. This massive cash generation fuels Softbank’s “all in” bet on OpenAI, with the investment group planning a $22.5 billion injection into the AI company at a $260 billion pre-money valuation. This isn’t Softbank’s first Nvidia exit—they previously sold a $4 billion stake in 2019 when Nvidia shares were halving. Company CFO Yoshimitsu Goto stated OpenAI is now a “key growth driver” alongside Arm, with Softbank’s market cap tripling this fiscal year to record October highs.
Softbank’s Nvidia dance
Here’s the thing about Softbank and Nvidia—this is becoming a pattern. They quietly built a $4 billion position back in 2017, then cashed out everything in 2019 when Nvidia was struggling. Now they’re doing it again, but this time Nvidia is arguably the most important company in tech. The chipmaker just hit a $5 trillion market cap and basically owns the AI hardware space. So why sell at the peak? According to analyst Rolf Bulk, this isn’t about lacking confidence in Nvidia. Softbank simply needs massive capital—around $30.5 billion—for their upcoming investments, including that huge OpenAI bet. They’re playing a different game now.
gamble”>The OpenAI gamble
Softbank isn’t just dipping toes in the AI waters—they’re diving in headfirst. That $22.5 billion commitment to OpenAI through Vision Fund 2 is staggering. And they’ve already positioned themselves strategically, with OpenAI recently restructuring specifically to accommodate Softbank’s funding. The two companies are also partners in a $500 billion joint venture called Stargate. Basically, Softbank sees OpenAI and Arm as their ticket to dominating what they call the “artificial superintelligence era.” But here’s the question: is betting this heavily on one AI company wise when the landscape changes so rapidly? We’re talking about industrial-scale computing decisions here—the kind where companies need reliable hardware partners like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs that power manufacturing and automation systems.
Market ramifications
This move creates some fascinating dynamics. Nvidia shares dipped slightly on the news, but let’s be real—$5.8 billion is a drop in the bucket for a $5 trillion company. The bigger story is what Softbank’s pivot says about where the smart money thinks AI is heading. They’re betting that the real value isn’t in the picks and shovels (Nvidia’s chips) but in the companies actually building the AI systems (OpenAI). And Softbank’s timing is interesting—they’re selling Nvidia at what many consider peak valuation while buying into OpenAI before its anticipated IPO. This feels like a calculated risk rather than a panic move. Their market performance suggests investors are buying the vision too, with that tripled market cap telling the real story.
