TOKYO (TechGenez) – SoftBank Group Corp. has offloaded its entire stake in Nvidia Corp. for $5.83 billion to bankroll a slate of ambitious artificial intelligence initiatives, including massive data centers and robot manufacturing, even as investors raise questions about the returns on surging tech capital expenditures.
The sale, disclosed in SoftBank’s latest regulatory filing, marks founder Masayoshi Son’s pivot from Nvidia shares to direct AI bets, highlighting the Japanese conglomerate’s high-stakes gamble on the technology’s future. The move coincides with a broader debate over whether massive spending by giants like Meta Platforms Inc. and Alphabet Inc.—projected to exceed $1 trillion in coming years—will deliver proportional value.
Nvidia’s shares fell 1.3% in pre-market trading on Monday, reflecting market jitters over the divestment from a key shareholder.
Stake Sale Details
SoftBank, which acquired Nvidia shares through its Vision Fund and other vehicles, sold the holding at an average price of $141.50 per share, generating $5.83 billion in proceeds, according to the filing with Japan’s Financial Services Agency.
The stake, valued at around $8 billion at peak Nvidia prices earlier this year, was accumulated during Son’s aggressive push into semiconductors and AI hardware.
The funds will support SoftBank’s sprawling AI portfolio, including a $500 billion Stargate data center project with OpenAI and Oracle, and new AI robot factories in the U.S. aimed at humanoid development.
Son, known for bold bets like the $100 billion WeWork debacle, has recommitted to AI, vowing to invest $100 billion annually through 2030.
Company Response
SoftBank Chief Investment Officer Alex Clavel said in a statement: “This strategic repositioning allows us to directly invest in the next wave of AI infrastructure and applications, where we see the highest returns.”
A Nvidia spokesperson noted: “We appreciate SoftBank’s past support and remain focused on executing our roadmap for AI acceleration.”
Son, in a September interview with Nikkei, emphasized: “AI is the most important technology since electricity. We’re all-in to build the future.”
Broader Context
SoftBank’s exit from Nvidia underscores the shifting dynamics in AI investing. The Japanese firm, once Nvidia’s largest shareholder outside the U.S., has pivoted to direct plays like Stargate, a supercomputer cluster with 1 million GPUs, and Izanagi, a $100 billion AI chip fund.
The sale comes amid cooling Nvidia enthusiasm. The chipmaker’s shares have fallen 15% from September highs, pressured by U.S. export curbs to China and concerns over AI hype.
Big Tech’s AI spending frenzy—Meta’s $40 billion capex plan, Alphabet’s $75 billion—has sparked ROI skepticism. Goldman Sachs estimates $1.2 trillion in global AI infrastructure by 2028, but warns of a “bubble” if adoption lags.
SoftBank’s Vision Fund 2, down 20% since inception, needs wins after WeWork and FTX losses totaling $16 billion.
Challenges
- SoftBank faces execution risks in its AI empire. Stargate’s $500 billion price tag requires partners like Oracle, while robot factories compete with Tesla’s Optimus.
- Investor skepticism grows: SoftBank’s market cap is 60% below its 2021 peak, per Bloomberg data.
- Nvidia’s China curbs, limiting $8 billion in sales, could slow SoftBank’s indirect exposure.
Quotes
Son in Nikkei: “We’re investing $100 billion yearly in AI—it’s the industrial revolution on steroids.”
Clavel: “Proceeds from Nvidia will fuel our direct AI infrastructure plays for outsized returns.”
Broader Industry Trends
- AI capex is exploding: Big Tech plans $1.2 trillion by 2028, per Goldman Sachs, rivaling the 1990s internet buildout.
- Nvidia’s revenue hit $30 billion in Q2, up 122%, but shares are volatile amid bubble fears.
- SoftBank’s Vision Fund raised $40 billion for AI in September, targeting startups in semiconductors and data centers.
- Global AI investment reached $100 billion in 2025, per Crunchbase, with infrastructure dominating.
Outlook
SoftBank plans to deploy the $5.83 billion into Stargate and Izanagi by mid-2026, aiming for 20% returns.Nvidia’s Q3 earnings on November 20 could stabilize shares, with analysts forecasting $35 billion revenue.
Morgan Stanley sees SoftBank’s AI bets adding $200 billion to its valuation by 2030 if successful. As AI hype meets reality, SoftBank’s Nvidia sale is a high-wire act in the trillion-dollar tech gamble.
