SoftBank Shakes Up AI Industry with Massive NVIDIA Stake Sale to Fund OpenAI Investment

SoftBank sent shockwaves through the AI industry this morning after announcing the sale of its entire stake in NVIDIA, widely considered the key player at the heart of the current AI boom. According to a report from CNBC, the proceeds from this high-profile sale are earmarked for a massive new investment in OpenAI, the maker of ChatGPT.

The news was confirmed by SoftBank CFO Yoshimitsu Goto during a company presentation. “We want to provide a lot of investment opportunities for investors while we can still maintain financial strength,” Goto said.

According to sources cited by CNBC, SoftBank raised $5.83 billion from the NVIDIA (NVDA) sale. This cash, combined with funds from a separate T-Mobile stake sale, is expected to help finance a staggering $22.5 billion investment into OpenAI.

The announcement had an immediate impact on the stock market. Shares in both NVIDIA and SoftBank dipped on the news, as investors reacted to the major realignment of interests in the rapidly shifting AI market.

A SoftBank spokesperson told CNBC that the decision to sell their NVIDIA stake is unrelated to any doubts about AI technology or its long-term potential. Instead, the move is part of SoftBank’s broader strategy to remain financially flexible while doubling down on the next phase of AI development.

Stay tuned for more updates as SoftBank’s bold bet on OpenAI takes shape.
https://www.shacknews.com/article/146797/softbank-nvidia-stake-sale