SoftBank Dumps Entire $5.8 Billion Nvidia Stake to Fund $30 Billion OpenAI Investment
Summary
SoftBank sells its entire $5.8 billion Nvidia stake to fund a massive $30 billion investment in OpenAI and participate in a $1 trillion AI manufacturing hub in Arizona, sending Nvidia shares down 3% as markets question founder Masayoshi Son's bold bet on artificial intelligence over chip manufacturing.
Key Points
- SoftBank sells its entire $5.8 billion Nvidia stake to fund AI investments including a planned $30 billion commitment to OpenAI and participation in a $1 trillion AI manufacturing hub in Arizona
- Nvidia shares drop nearly 3% following the disclosure as markets question whether SoftBank founder Masayoshi Son sees something others do not in the AI sector
- The sale marks SoftBank's second complete exit from Nvidia after previously selling a $4 billion stake in 2019 for $3.6 billion that would now be worth over $150 billion