"Shares in Japanese tech investor SoftBank have taken a knock, after it revealed it has sold its stake in chipmaker Nvidia. SoftBank surprised investors yesterday by revealing it sold its shares in Nvidia last month, raising $5.8bn, to fund its other investments in artificial intelligence pioneers, such as ChatGPT parent OpenAI. And the market verdict today has been decisive. SoftBank's shares touched a one-month low when trading opened in Tokyo - down as much as 10% at one stage"
"It appears SoftBank is looking to boost its bets further down the AI chain toward companies that actually use AI, like OpenAI and ABB Robotics. For those unhappy with the circularity of current AI deals, this is good news. Meta, for instance, signed a deal with Dutch cloud provider Nebius, which predicted rapid growth next year and when I say rapid, it's rapid: their sales soared by more than 300% last quarter. Their share price? It tanked 7% yesterday, along with CoreWeave, which fell 16%."
SoftBank sold its shares in Nvidia last month, raising $5.8bn to fund other investments in artificial intelligence pioneers such as OpenAI. The sale prompted a market reaction: SoftBank's shares fell to a one-month low, slipping as much as 10% intraday and closing down 3.5%. The move intensified questions about sky-high AI sector valuations and highlighted SoftBank's growing funding demands to back its AI bets. Nvidia shares declined about 3% amid a broader tech sell-off. Analysts said the sale should not signal abandonment of AI; SoftBank appears to be reallocating toward companies that use AI, including OpenAI and ABB Robotics.
Read at www.theguardian.com
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