SoftBank Group (TYO: 9984) has sold its entire $5.8 billion stake in Nvidia, triggering new debate over whether the AI frenzy has peaked.
The move comes as CEO Masayoshi Son doubles down on his “all-in AI strategy,” reallocating capital toward:
- ⚙️ OpenAI, where SoftBank has pledged up to $40 billion in funding
- 🛰️ The $500 billion Stargate Project, a U.S. data-center initiative powering next-gen AI infrastructure
🔹 Investor Jitters Rising
- Nvidia shares fell 2%, dragging the S&P 500 lower.
- AI cloud provider CoreWeave also cut revenue forecasts, adding to unease.
- Morgan Stanley and Goldman Sachs warned of possible AI-driven equity pullbacks, while famed short-seller Michael Burry reportedly bet against Nvidia and Palantir.
“The sale timing suggests Son believes the AI rally — up 1,200% in three years — may be cooling,” said Cantor Fitzgerald’s C.J. Muse.
🔹 Rebuilding the War Chest
Alongside the Nvidia exit, SoftBank sold $9.2B in T-Mobile shares, expanding its liquidity to accelerate investments across OpenAI, Oracle, and other AI infrastructure ventures.
“By cashing in now, Son is securing capital to double down on his conviction in AI applications and super-scaled infrastructure,” said Michael Ashley Schulman, CIO of Running Point Capital.
🔹 Bubble or Long Game?
SoftBank’s stock has more than doubled this year, largely tied to OpenAI’s soaring valuation.
But with OpenAI’s financing still opaque — and $1.4T in planned AI infrastructure deals lacking funding clarity — questions persist:
⚠️ Is SoftBank fueling the next tech revolution, or another speculative bubble?