SoftBank Sells Nvidia Stake to Boost AI Investments

November 11, 2025 at 19:34 UTC

5 min read

SoftBank and Nvidia logos with AI investment theme, highlighting $5.83B stake sale

Key Points

SoftBank sold its entire 32.1 million-share stake in Nvidia for $5.83 billion in October 2025 to fund expanded AI investments.
The sale is part of SoftBank's strategy to finance a $40 billion investment in OpenAI and other AI-related projects, including the $500 billion Stargate data center initiative.
SoftBank reported a record net profit of approximately $16.3 billion for the July-September quarter, driven largely by gains in its Vision Fund, especially from OpenAI holdings.
Despite concerns about an AI market bubble and valuation risks, SoftBank maintains that the risk of not investing in AI outweighs the risks of investing.

SoftBank's Complete Exit from Nvidia

In a significant portfolio shift, SoftBank Group Corp. announced in November 2025 that it had sold its entire stake in Nvidia Corporation, offloading 32.1 million shares for approximately $5.83 billion. This sale, executed in October, marked SoftBank's second full exit from the AI chipmaker, having previously sold its initial stake in early 2019 before re-entering the position. The average sale price was just under $182 per share, below Nvidia's recent closing price of $199.05. The move surprised investors given Nvidia's status as a leading AI hardware provider and its recent market capitalization peak exceeding $5 trillion. Nvidia shares experienced a decline of over 1.5% in premarket trading following the announcement. SoftBank's Chief Financial Officer Yoshimitsu Goto clarified that the sale was unrelated to Nvidia's fundamentals but was a strategic decision to raise capital for other investments. Alongside Nvidia, SoftBank also sold a portion of its T-Mobile stake, generating $9.17 billion in proceeds. The divestments are part of a broader asset monetization effort to support SoftBank's expanding AI investment agenda.

Strategic Pivot to AI and OpenAI

SoftBank's divestment from Nvidia aligns with its intensified focus on artificial intelligence, particularly its substantial investment in OpenAI, the developer of ChatGPT. Earlier in 2025, SoftBank committed to leading a funding round for OpenAI totaling up to $40 billion, with $30 billion expected from SoftBank's own capital. By November, SoftBank's total investment in OpenAI was projected to reach $34.7 billion. The company also participates in the $500 billion Stargate project, a U.S.-based AI infrastructure initiative involving data center expansion and partnerships with firms like Oracle. To finance these commitments, SoftBank has issued yen bonds, foreign debt, and arranged bridge loans, including $8.5 billion for OpenAI and $6.5 billion for the acquisition of chip designer Ampere Computing. Masayoshi Son, SoftBank's founder and chairman, has articulated a vision of establishing a comprehensive AI ecosystem encompassing chips, robotics, data centers, and energy. This strategic pivot reflects SoftBank's belief in the transformative potential of AI technologies and its intent to be a central player in the sector's development.

Financial Performance and Market Impact

SoftBank's fiscal second quarter ending September 30, 2025, showcased a remarkable financial turnaround, with net profit more than doubling to approximately 2.5 trillion yen ($16.3 billion), significantly surpassing analyst expectations. This surge was largely driven by unrealized gains in its Vision Fund portfolio, particularly from AI-related holdings such as OpenAI. The Vision Fund reported an investment gain of around 2.76 trillion yen ($23.3 billion) for the quarter, up from 567 billion yen a year earlier. SoftBank's revenue also increased by 7.7% year-over-year to 3.7 trillion yen ($24 billion). The company's stock price rose sharply, with a 78% increase over the three months ending September, marking its strongest performance since 2005. Concurrently, SoftBank announced a four-for-one stock split effective January 1, 2026, aimed at enhancing stock accessibility and broadening its shareholder base. Despite the Nvidia stake sale causing a modest decline in Nvidia's share price, SoftBank's shares in Tokyo rose by approximately 2%. The company's financial strength and liquidity position have been bolstered by these asset sales, enabling continued aggressive investment in AI.

Market Concerns and SoftBank's Investment Philosophy

The timing of SoftBank's Nvidia stake sale has fueled broader market discussions about a potential AI investment bubble. Several prominent investors and analysts, including hedge fund manager Michael Burry and executives from Morgan Stanley and Goldman Sachs, have expressed caution regarding the sustainability of current AI valuations and capital expenditures. Nvidia's stock, after a historic rally exceeding 1,200% over three years, has shown signs of volatility, with some investors questioning whether the rapid appreciation reflects underlying fundamentals. Additionally, OpenAI has faced scrutiny over its mounting losses and financing strategies, including reports of seeking federal loan guarantees, which its CEO Sam Altman has publicly denied. Despite these concerns, SoftBank's leadership maintains a contrarian stance. CFO Yoshimitsu Goto emphasized that while opinions vary, SoftBank views the risk of not investing in AI as greater than the risk of investing. The company continues to pursue large-scale AI projects, underscoring its conviction in the long-term growth and transformative impact of artificial intelligence technologies.

Key Takeaways

SoftBank's sale of its entire Nvidia stake is a strategic move to fund expansive AI investments, particularly in OpenAI and related infrastructure projects.
The company's record quarterly profits reflect significant gains from AI-related holdings, validating its focused investment approach despite market volatility.
Concerns about an AI bubble persist, but SoftBank prioritizes maintaining financial strength and capitalizing on AI's growth potential over short-term market fears.