SoftBank has made a significant shift in its investment strategy by selling 32.1 million shares of NVIDIA for a total of $5.83 billion, completely liquidating its stake in the chipmaker.
This move, which experts say reflects a strong commitment to the future of artificial intelligence, also includes the sale of part of its stake in T-Mobile for $9.17 billion.
The Japanese giant is abandoning its focus on physical infrastructure, such as semiconductors, to concentrate on investing in artificial intelligence models.
Are they expecting a drop in Nvidia’s stock?
SoftBank has committed a total of 40 billion dollars to OpenAI, where it anticipates that true profitability lies in the application layer of AI, rather than in chip manufacturing.
This strategy is reinforced by a recent report detailing benefits of $16.3 billion in its second fiscal quarter, primarily driven by its investments in OpenAI through the Vision Fund.
This is not the first time that SoftBank has made controversial decisions regarding NVIDIA. In 2019, it sold shares at a time when prices were under pressure, facing criticism for the timing of its sale.
Currently, NVIDIA is at historical highs, a context that makes SoftBank’s decision to divest its shares during this wave of advancements in artificial intelligence even more surprising.
As an extension of its commitment to OpenAI, SoftBank will lead the Stargate initiative alongside the organization, which aims to attract 100 billion dollars to develop data centers.
Each entity will contribute 19 billion, positioning itself in a rapidly growing market. However, SoftBank’s investment track record, which includes notable failures like WeWork and FTX, raises the question of whether this new direction will be its salvation or a costly slip.