The post SoftBank Dumps Entire $5. 8B Nvidia Stake to Double Down com. In brief SoftBank sold its entire 32. 1 million-share Nvidia position for $5. 83 billion in October, marking the second time the firm has exited the AI chipmaker. The asset sales are funding SoftBank’s investment in OpenAI, with $22. 5 billion scheduled to close in December following an October agreement amendment. “As SoftBank’s investment in OpenAI was very large the company had to use its existing assets to finance new investments,” CFO Yoshimitsu Goto told reporters. SoftBank Group sold all its shares in Nvidia in October, severing ties with the AI chipmaker that powered the sector’s historic rally. The Japanese conglomerate is redirecting capital toward OpenAI, even as the ChatGPT maker faces mounting losses and its CEO’s credibility comes under fire. The Tokyo-based firm disclosed the complete exit from Nvidia in its financial filing Tuesday, revealing that it and an asset management subsidiary “sold all of Nvidia Corporation shares that they had owned, for $5. 83 billion.” The move came alongside a $9. 17 billion partial sale of its T-Mobile stake, part of an “asset monetization” to fund a $40 billion investment in OpenAI by year-end. The sale comes as Wall Street questions whether AI infrastructure spending will pay off and as OpenAI CEO Sam Altman faces scrutiny for publicly denying he sought federal loan guarantees just days after his company explicitly requested them in a letter to the White House. SoftBank’s Vision Fund posted a blowout investment gain of $23. 4 billion (¥3. 54 trillion) for the quarter, $14. 3 billion (¥2. 16 trillion) of which came from marking up its OpenAI holdings to a pre-money valuation of $260 billion. The gains helped the company more than double net income to $19. 3 billion (¥2. 924 trillion), up 190. 9% from the previous year. The Nvidia sale marks SoftBank’s second exit from the chipmaker, after an initial $4 billion stake bought.
