SoftBank Sells Entire Nvidia Stake as Son Bets $30 Billion on OpenAI

SoftBank Group has sold its entire holding in Nvidia, worth about $5.8 billion, as founder and CEO Masayoshi Son doubles down on artificial intelligence with a $30 billion investment in OpenAI. The move marks one of the largest single reallocations of capital in the global tech sector this year and underscores a pivot away from semiconductor exposure toward AI software infrastructure — a shift closely watched by traders following Nvidia (Zorrox: NVIDIA.).

EXITING NVIDIA TO FUND A BIGGER AI GAMBLE

SoftBank confirmed that it had liquidated its entire Nvidia position during October, freeing capital to fund its commitment to OpenAI. The sale, which reportedly generated nearly $5.8 billion, ends SoftBank’s most successful semiconductor bet and redirects resources toward what Son calls “the infrastructure of the AI revolution.”

The company plans to deploy up to $30 billion in stages, tied to OpenAI’s ongoing corporate restructuring that will allow for-profit operations and a future listing. While Nvidia remains the dominant player in AI chips, Son’s bet suggests he sees greater upside in the ecosystem of models, data, and platforms built atop that hardware.

SHIFTING STRATEGY AT A CRUCIAL MOMENT

SoftBank’s pivot comes as the company attempts to reposition itself after years of uneven performance across its Vision Fund portfolios. By moving from chip exposure into software-oriented AI, Son is effectively trading short-term liquidity for longer-term strategic control.

Selling Nvidia now also caps a spectacular run: the chipmaker’s shares have surged more than 1,300 percent over five years, making it one of the most valuable companies in the world. For SoftBank, the risk-reward equation may no longer justify holding at such levels — particularly as chip valuations start to reflect perfection.

Yet the decision isn’t without risk. OpenAI’s valuation, last reported around $300 billion, assumes rapid monetization of generative AI products in a still-developing market. Unlike Nvidia’s transparent earnings power, OpenAI’s business model and revenue outlook remain opaque.

IMPLICATIONS FOR THE AI LANDSCAPE

Nvidia loses a high-profile institutional shareholder, but the broader market impact appears minimal. Investors view SoftBank’s sale as symbolic — signalling a possible transition in capital flows from AI hardware toward AI services.

For Son, the move aligns with his long-term vision of “artificial general intelligence” driving a new industrial era. SoftBank is exploring opportunities in AI-powered robotics, autonomous logistics, and large-scale data infrastructure, positioning itself as a cross-sector enabler rather than a passive investor.

Meanwhile, Nvidia’s role remains central. Its chips remain essential to OpenAI’s own training systems, meaning Son’s exit from Nvidia stock doesn’t sever dependency on the company’s technology — it merely shifts the exposure from hardware ownership to indirect reliance via OpenAI’s demand.

RISKS AND MARKET OUTLOOK

SoftBank’s reallocation amplifies concentration risk. A $30 billion commitment to a single unlisted company introduces significant valuation uncertainty. OpenAI’s governance restructuring and regulatory exposure are additional unknowns. Should the company delay its anticipated IPO or face restrictions in AI commercialization, SoftBank could face a prolonged capital lock-in.

For Nvidia, the divestment removes a high-profile shareholder but not necessarily buying interest. Demand for its AI processors remains strong, and any temporary weakness from headline-driven sentiment may prove transitory. Traders are watching whether Nvidia’s next earnings release reinforces its growth trajectory and justifies its current valuation premium.

TIPS FOR TRADERS

• Watch Nvidia (Zorrox: NVIDIA.) — short-term volatility may emerge following SoftBank’s divestment, but long-term fundamentals remain tied to AI hardware demand.

• Track developments at OpenAI — any confirmation of new funding rounds or IPO timelines could validate SoftBank’s high-risk, high-conviction pivot.

• Monitor capital-flow rotation within AI — institutional money may increasingly favour software and service layers over chip manufacturing.

• Observe sentiment around tech conglomerates — large single-bet strategies tend to amplify volatility across correlated assets.

• Use Nvidia’s trading response as a barometer — it may signal broader investor appetite for AI equities after one of the sector’s biggest portfolio shifts this year.