What's happened
On November 11, 2025, SoftBank sold its entire $5.8 billion stake in Nvidia to fund a $30 billion investment in OpenAI and other AI projects. Despite Nvidia's critical role in AI hardware, SoftBank is shifting focus to AI software and infrastructure, reporting a record $16.6 billion profit driven by OpenAI's valuation gains.
What's behind the headline?
Strategic Shift from Hardware to Software
SoftBank's divestment from Nvidia, despite the chipmaker's pivotal role in AI, signals a deliberate pivot from hardware to AI software and infrastructure. This reflects a broader industry trend where investors seek to capitalize on the platforms and applications that leverage AI hardware rather than the hardware itself.
Managing Financial Resources Amid AI Boom
SoftBank's sale is a pragmatic move to fund its massive $30 billion investment in OpenAI and related AI infrastructure projects like Stargate. This underscores the enormous capital demands of AI development and the need for liquidity even among major investors.
Market Implications and Bubble Concerns
The sale has fueled debate about an AI bubble, with some investors wary of inflated valuations. However, SoftBank's CFO, Yoshimitsu Goto, emphasized that the sale was not a reflection on Nvidia's prospects but a reallocation of capital. This nuanced stance highlights the complexity of AI investment dynamics.
Risks and Rewards
Masayoshi Son's history of bold bets suggests confidence in OpenAI's long-term value over Nvidia's current market position. Yet, shifting from a publicly traded, transparent company to a private entity like OpenAI introduces valuation and liquidity risks. The outcome will shape perceptions of AI investment strategies going forward.
Impact on Investors and Markets
SoftBank's move may prompt other investors to reconsider their AI portfolios, balancing hardware exposure with software and infrastructure stakes. For the broader market, this signals a maturing AI investment landscape where capital flows are increasingly strategic rather than speculative.
What the papers say
According to Thomas Barrabi of the NY Post, SoftBank's sale of its 32.1 million Nvidia shares in October was driven by the need to fund a $22.5 billion investment in OpenAI, with CFO Yoshimitsu Goto stating, "We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength." Graeme Wearden in The Guardian highlighted that SoftBank's profit more than doubled to 2.5 trillion yen, driven by OpenAI's valuation gains, and Goto clarified the sale was "nothing to do with Nvidia itself." Business Insider UK noted the strategic nature of the sale, emphasizing SoftBank's shift from hardware to software, with the company viewing OpenAI as "more valuable than the building blocks" Nvidia provides. The New York Times' Michael J. de la Merced pointed out the massive scale of SoftBank's AI investments, including a $30 billion commitment to OpenAI and participation in the $500 billion Stargate AI infrastructure project, underscoring the financial demands behind the Nvidia stake sale. These sources collectively illustrate SoftBank's calculated repositioning within the AI sector, balancing risk and opportunity amid market uncertainties.
How we got here
SoftBank, led by Masayoshi Son, has been aggressively investing in AI, including a $30 billion commitment to OpenAI. To finance this, SoftBank sold its Nvidia shares in October 2025, a company whose chips power AI applications. This move follows SoftBank's history of strategic investments and divestments in Nvidia since 2017.
Go deeper
- Why did SoftBank sell its Nvidia shares?
- How is SoftBank investing in OpenAI?
- What does this mean for the AI market?
More on these topics
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Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
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Masayoshi Son is a Japanese billionaire technology entrepreneur, investor, and philanthropist. He is the founder and chief executive officer of the Japanese holding company SoftBank, CEO of SoftBank Mobile and chairman of UK-based Arm Holdings.
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OpenAI is an artificial intelligence research laboratory consisting of the for-profit corporation OpenAI LP and its parent company, the non-profit OpenAI Inc.
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SoftBank Group Corp. is a Japanese multinational conglomerate holding company headquartered in Tokyo. SoftBank owns stakes in many technology, energy, and financial companies.
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Samuel H. Altman is an American entrepreneur, investor, programmer, and blogger. He is the CEO of OpenAI and the former president of Y Combinator.