SoftBank Dumps Entire $5.8B Nvidia Stake to Double Down on OpenAI Bet

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The Japanese conglomerate is redirecting capital toward OpenAI, even as the ChatGPT maker faces mounting losses and its CEO's credibility comes under fire.The Tokyo-based firm disclosed the complete exit from Nvidia in its financial filing Tuesday, revealing that it and an asset management subsidiary "sold all of Nvidia Corporation shares that they had owned, for $5.83 billion."The move came alongside a $9.17 billion partial sale of its T-Mobile stake, part of an "asset monetization" to fund a $40 billion investment in OpenAI by year-end.The sale comes as Wall Street questions whether AI infrastructure spending will pay off and as OpenAI CEO Sam Altman faces scrutiny for publicly denying he sought federal loan guarantees just days after his company explicitly requested them in a letter to the White House.SoftBank's Vision Fund posted a blowout investment gain of $23.4 billion (¥3.54 trillion) for the quarter, $14.3 billion (¥2.16 trillion) of which came from marking up its OpenAI holdings to a pre-money valuation of $260 billion.OpenAI Sought Government Loan Guarantees Days Before Sam Altman's DenialThe gains helped the company more than double net income to $19.3 billion (¥2.924 trillion), up 190.9% from the previous year.The Nvidia sale marks SoftBank’s second exit from the chipmaker, after an initial $4 billion stake bought in 2017 and sold in early 2019. The group later re-entered before offloading its position again in October.To finance its OpenAI investment, SoftBank issued $4.1 billion (¥620 billion) in yen bonds, $4.2 billion in foreign debt, and arranged bridge loans of $8.5 billion for OpenAI and $6.5 billion for ABB Robotics."As SoftBank's investment in OpenAI was very large the company had to use its existing assets to finance new investments," the firm’s Chief Financial Officer Yoshimitsu Goto said in a press briefing, as cited in a CNBC report.SoftBank agreed on March 31 to invest up to $40 billion in OpenAI, with $30 billion of its own capital, with $10 billion funded in April and $22.5 billion set for December, according to the filing.Inside OpenAI’s Massive $40B Funding Round Led by Japan’s SoftBankThe robotics acquisition aligns with SoftBank’s stated mission to “realize artificial super intelligence (ASI) for the advancement of humanity,” focusing on AI chips, robots, data centers, and energy, and investing in leading generative AI firms, according to the filing.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,850.92 +4.31 (+0.06%)Dow 3048,254.82 +326.86 (+0.68%)Nasdaq23,406.46 -61.84 (-0.26%)Russell 20002,456.00 -2.28 (-0.09%)VIX17.48 +0.20 (+1.16%)Gold4,200.60 +84.30 (+2.05%)PortfolioSign in to access your portfolioSign inTop gainersMH McGraw Hill, Inc. 14.09 +2.72 (+23.92%)CNTA Centessa Pharmaceuticals plc 26.70 +4.16 (+18.46%)BBAI BigBear.ai Holdings, Inc. 7.17 +1.11 (+18.38%)ONON On Holding AG 41.52 +6.34 (+18.02%)ORLA Orla Mining Ltd. 12.02 +1.44 (+13.61%)Top losersDGNX Diginex Limited 14.00 -2.35 (-14.37%)CRCL Circle Internet Group 85.94 -12.36 (-12.57%)RGTI Rigetti Computing, Inc. 28.30 -3.10 (-9.87%)DQ Daqo New Energy Corp. 32.17 -3.44 (-9.67%)MENS Jyong Biotech Ltd. 36.70 -3.96 (-9.74%)Most activeOPEN Opendoor Technologies Inc. 9.37 +0.89 (+10.50%)BBAI BigBear.ai Holdings, Inc. 7.17 +1.11 (+18.38%)PLUG Plug Power Inc. 2.7300 +0.2000 (+7.91%)NVDA NVIDIA Corporation 193.80 +0.64 (+0.33%)AMD Advanced Micro Devices, Inc. 258.89 +21.37 (+9.00%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 101,551.67 -1,190.40 (-1.16%)LPTX Leap Therapeutics, Inc. 2.0500 +1.6125 (+368.57%)CRCL Circle Internet Group 85.94 -12.36 (-12.57%)ONON On Holding AG 41.52 +6.34 (+18.02%)ETH-USD Ethereum USD 3,413.55 -23.21 (-0.68%)Top economic events