SoftBank Sells Entire NVIDIA Stake for $5.83 Billion, Shifting Focus to OpenAI Investment and Sparking AI Bubble Debate

Abstract

Japanese tech investment giant SoftBank Group completed the sale of its entire stake in U.S. chipmaker NVIDIA in October 2025, raising $5.83 billion. This marks SoftBank’s second full exit from its investment in the AI chip leader, with proceeds earmarked to support its $30 billion investment commitment to OpenAI.

Transaction Details

According to SoftBank’s Q2 FY2025 earnings report released on November 12, 2025 (U.S. Eastern Time), the company sold all 32.1 million NVIDIA shares it held in October, generating $5.83 billion in proceeds. Based on the sale price, SoftBank exited at approximately $181.58 per share—just 14% below NVIDIA’s all-time high of $212.19.

Simultaneously, SoftBank disclosed other significant asset sales:

• Sold a portion of its T-Mobile shares, raising $9.17 billion
• Sold part of its Deutsche Telekom stake, raising $2.37 billion
• Expanded its margin loan secured against Arm shares from $13.5 billion to $20 billion

Strategic Shift: All-In on AI

SoftBank CFO Yoshimitsu Goto emphasized during the investor call on November 12, 2025 (U.S. Eastern Time) that the divestment was not a negative assessment of NVIDIA’s prospects but part of the company’s “asset monetization” strategy. He stated, “We aim to provide investors with more investment opportunities while maintaining financial strength.”

OpenAI Investment Plan

SoftBank founder Masayoshi Son is advancing multiple ambitious AI initiatives:

• Committed $22.5 billion to OpenAI, increasing its stake from 4% to 11%
• Participating in the $500 billion “Stargate” data center project alongside OpenAI and Oracle
• Planning a $1 trillion AI manufacturing hub in Arizona
• Acquiring U.S. chip design firm Ampere Computing for $6.5 billion
• Purchasing ABB’s robotics division for $5.4 billion

Strong Financial Performance

Buoyed by mark-to-market gains from OpenAI’s soaring valuation, SoftBank’s net profit for the second fiscal quarter doubled to ¥2.5 trillion (approximately $16.6 billion), marking its best quarterly result since July–September 2022. The Vision Fund recorded $19 billion in gains, primarily driven by a ¥2.16 trillion increase in the valuation of its OpenAI stake.

SoftBank also announced a 1-for-4 stock split effective January 1, 2026, to enhance accessibility for retail investors. Since the beginning of 2025, SoftBank’s share price has nearly tripled, as investors view it as a proxy investment for OpenAI’s success.

History Repeats Itself and Market Reaction

This is SoftBank’s second complete exit from NVIDIA:

• 2017: SoftBank Vision Fund accumulated $4 billion worth of NVIDIA shares
• January 2019: Sold its entire stake for $3.6 billion (which would be worth over $150 billion today if held)
• 2020: Rebuilt its position
• October 2025: Fully exited again, realizing $5.83 billion in gains

Markets reacted cautiously to the news. NVIDIA’s share price fell about 3% following the announcement, while SoftBank’s stock rose 2% during Tokyo trading hours. Analysts generally believe this move reflects SoftBank’s urgent need for capital to fund its AI ambitions rather than concerns about NVIDIA’s outlook.

Funding Gap Challenges

David Gibson, an analyst at MST Financial, told the Financial Times that SoftBank has committed approximately $113 billion in investments but only has $58.5 billion in funding capacity. To bridge this gap, SoftBank has adopted aggressive financing strategies:

• Selling existing equity holdings
• Issuing bonds
• Securing an $8.5 billion bridge loan for its OpenAI investment
• Arranging additional bridge financing for the Ampere acquisition

AI Bubble Debate

SoftBank’s timing coincides with growing skepticism in the market about AI investment returns. Tech giants like Meta and Alphabet are projected to spend over $1 trillion on AI in the coming years, yet returns remain uncertain.

When asked whether an AI bubble exists, CFO Yoshimitsu Goto responded, “I cannot judge whether we are in an AI bubble.” He stressed that SoftBank will continue its AI investment program, believing in the long-term value of transformative technologies.

Ongoing Ties

Despite selling its entire stake, SoftBank maintains close business ties with NVIDIA. Many SoftBank-backed companies rely on NVIDIA technology, and several AI infrastructure projects—including the Stargate data center initiative—heavily depend on NVIDIA chips.

Rolf Bulk, an analyst at New Street Research, commented: “In our view, this should not be interpreted as a cautious or negative stance toward NVIDIA, but rather understood in the context of SoftBank needing at least $30.5 billion in funding for its investments in the October–December quarter.”

Outlook

SoftBank is striving to become “the first platform provider of the Artificial Superintelligence era.” Powered by its dual engines—Arm and OpenAI—Masayoshi Son aims to secure a central role in the AI revolution. However, its aggressive financing approach and massive investment commitments have raised concerns about its financial sustainability.

As the AI sector continues to evolve rapidly, SoftBank’s latest strategic pivot will stand as a pivotal chapter in its transformation story. Markets will closely watch whether this Japanese tech giant can achieve new glory through its “all-in” AI strategy—or repeat past investment missteps.