SoftBank has sold its $5.8 billion stake in Nvidia to free up funds for its ambitious OpenAI investments, a move that highlights the Japanese conglomerate’s deepening commitment to artificial intelligence. The divestment comes amid increasing discussion over inflated AI valuations following Nvidia’s extraordinary market rise.
The company reported a quarterly profit of 2.5 trillion yen, more than double from a year earlier, largely thanks to its AI-focused portfolio. SoftBank also trimmed its stake in T-Mobile to strengthen liquidity for new investments.
Chief Financial Officer Yoshimitsu Goto said the Nvidia sale was not a reaction to the company’s performance but a strategic reallocation of capital. “We are preparing for long-term AI opportunities that will define the next decade,” he explained.
Nvidia shares fell 3.5% in New York trading following the announcement, pulling other tech stocks down, including Arm and Micron. The Nasdaq Composite slipped nearly 1%, reflecting investor unease about overheating AI valuations.
Market analysts believe the sale signals a broader evolution in SoftBank’s approach — from investing in the infrastructure of AI to backing the innovators shaping its applications. The company’s growing alignment with OpenAI suggests it wants to be at the center of the generative AI revolution rather than on its periphery.