SoftBank sells $28B Nvidia stake to fund AI investments
SoftBank Group sold its entire 32 million-share stake in Nvidia for $28 billion in October to free up cash for artificial intelligence investments. The announcement came as the company reported net profit of ¥2.5 trillion for the quarter ended September, lifted by gains linked to OpenAI and PayPay.
Chief financial officer Yoshimitsu Goto outlined the rationale on Tuesday: “Our investment in OpenAI is large — more than $30bn needs to be made — so for that we do need to divest our existing portfolios.” He characterized the Nvidia sale as “nothing to do with Nvidia itself.”
SoftBank said its Vision Funds posted an investment gain of ¥2.8 trillion in the quarter, with contributions from holdings including OpenAI and Japanese payments operator PayPay. The Nvidia disposal followed other asset monetizations, including part of its stake in U.S. carrier T-Mobile for $58.53 billion.
OpenAI completed a restructuring last month that enabled a second tranche of SoftBank funding. After the changes, SoftBank holds roughly 11% of OpenAI, while Microsoft owns close to 27%.
Founder Masayoshi Son has been concentrating capital in AI-related assets. Alongside controlling UK chip designer Arm, the group has invested in Oracle, backed the Stargate data center build-out in the U.S., and agreed to acquire ABB’s robotics unit in a deal valuing the business at $5.4 billion.
SoftBank shares have more than doubled this year to above ¥22,000. The company approved a four-for-one stock split effective January 1 to broaden its investor base.
Analysts remain split on valuation. CLSA’s Oliver Matthew estimates the shares trade at a discount of close to 25% versus the value of holdings under a $1 trillion valuation for OpenAI and set a target price of ¥29,000.
Others flagged funding needs tied to the AI strategy. MST Financial’s David Gibson downgraded the stock last month, writing: “Longer term I estimate SoftBank has committed $113bn of investments, but only has funding ability of $58.5bn and hence it has overcommitted.” He pointed to potential reliance on the Vision Funds or sales of stakes in SoftBank Corporation or Arm, and noted that recent debt issuance carried interest rates above 8%.
As GNcrypto covered previously, Nvidia’s market value topped $5 trillion in October amid strong demand for its AI chips and new partnerships. The stock has risen about 50% in 2025, and industry estimates place its share of AI accelerators above 90%.
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