"One of the world's most prominent investors has sold all of its shares of the world's most prominent AI stock. Is that the end of the AI bubble? Not yet. Because the full story is more complicated: SoftBank Group disclosed Tuesday that it had sold $5.8 billion worth of Nvidia stock - and that it's putting the proceeds into OpenAI, the era-defining company behind ChatGPT. That is ... confusing. And also kind of fitting, since OpenAI and Nvidia have been tightly coupled for the past few years."
"Prior to that, you might have bought Nvidia stock because you thought its chips would be crucial for the video game industry. But since it turns out Nvidia's chips are crucial for the AI engines OpenAI and its competitors are building, Nvidia has now become the primary stock proxy for the AI boom, with its shares up more than 10x since ChatGPT's launch."
SoftBank Group sold $5.8 billion of its Nvidia stock, representing the company's entire Nvidia holding, and redirected the proceeds toward OpenAI. Nvidia's GPUs became the primary investor proxy for the AI boom after ChatGPT's debut, with shares rising over tenfold. SoftBank already invested $7.5 billion into OpenAI and plans an additional $22.5 billion. The company views OpenAI's models and services as potentially more valuable than hardware suppliers. Nvidia shares fell nearly 3% on the news. OpenAI and Nvidia have remained tightly coupled as hardware and software pillars of modern generative AI.
Read at Business Insider
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