Softbank dumps its entire Nvidia portfolio worth $5.8 billion as its CEO goes all-in on OpenAI to the tune of $30 billion | Fortune

"SoftBank Group has liquidated its complete stake in Nvidia for $5.8 billion, the company announced during a presentation for investors early Tuesday morning, instead redirecting capital toward OpenAI as part of a strategic pivot that underscores both the company's bullish conviction on AI and CEO Masayoshi Son's willingness to place massive, high-stakes bets on emerging tech. Nvidia stock fell 2% shortly after the opening bell."

"SoftBank sold 32.1 million Nvidia shares in October, the company disclosed Tuesday alongside fiscal second-quarter earnings showing net profit more than doubling to 2.5 trillion yen, or approximately $16.6 billion. The windfall represented SoftBank's best quarterly performance since July-September 2022, driven primarily by valuation gains in its OpenAI holdings, which totaled 2.16 trillion yen for the quarter."

"Asked during an earnings call about the timing of the Nvidia sale, SoftBank's CFO Yoshimitsu Goto suggested the company needed liquidity to fund its OpenAI commitments. "This year our investment in OpenAI is large, more than $30 billion needs to be made," he said. "For that, we do need to divest our existing assets.""

"Goto declined to specify whether the October timing held particular significance, but described the sale as part of SoftBank's ongoing cycle of "divesting and reinvesting," calling it the company's "fate" to continually reallocate capital. Notably, he added the decision had "nothing to do with Nvidia itself.""

SoftBank sold its full Nvidia stake for $5.8 billion and redirected the proceeds toward OpenAI as part of a strategic shift emphasizing AI investments. The company disclosed a sale of 32.1 million Nvidia shares in October alongside fiscal Q2 results showing net profit rising to 2.5 trillion yen (about $16.6 billion). Gains in OpenAI holdings, valued at 2.16 trillion yen for the quarter, drove the strong performance. This represents SoftBank's second complete exit from Nvidia; an earlier 2019 sale would now be worth over $150 billion if retained. CFO Yoshimitsu Goto said liquidity was needed to support more than $30 billion of planned OpenAI investments and framed the move as routine divesting and reinvesting.

Read at Fortune