"The company's CFO, Yoshimitsu Goto, said in an earnings presentation, which was translated by the company, that its decision to divest has "nothing to do with Nvidia itself" but is a way to reallocate its funds toward OpenAI. "This year the OpenAI investment is large," he said, adding that it plans to make the final part of its $30 billion investment by the end of the year."
"SoftBank said on Tuesday that it sold all of its 32.1 million shares in Nvidia in October. SoftBank's investment in OpenAI has generated a cumulative paper gain of about $7.7 billion, per its investor presentation. Goto said SoftBank's stake in OpenAI is about 11%. The conglomerate previously sold its investment in Nvidia in 2019, before the AI boom began, and later reinvested."
Net profit more than doubled to 2.5 trillion yen ($16.6 billion) in the quarter. The company sold all 32.1 million Nvidia shares in October, receiving $5.8 billion, and said the divestment enables financing for its OpenAI commitments. The final portion of a planned $30 billion OpenAI investment is scheduled by year-end; the OpenAI stake is about 11% with a cumulative paper gain near $7.7 billion. The conglomerate previously sold its Nvidia holding in 2019 and later reinvested. The CFO, Yoshimitsu Goto, emphasized "physical AI"—robotics and autonomous vehicles—and raised concerns about potential investment bubbles.
Read at Business Insider
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