SoftBank Cashes Out of Nvidia to Fund OpenAI Mega-Deal
The Tokyo-based investment giant liquidated approximately 32.1 million shares of the American semiconductor manufacturer during October, according to quarterly filings. Simultaneously, SoftBank divested a portion of its T-Mobile stake, generating an additional $9.17 billion.
SoftBank's Chief Financial Officer Yoshimitsu Goto explained the moves as strategic portfolio management. "We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength," Goto stated, per media.
"So through those options and tools we make sure that we are ready for funding in a very safe manner," he added, characterizing the transactions as part of the corporation's "asset monetization" strategy.
The Nvidia divestment, partial T-Mobile selloff, and margin financing secured against SoftBank's Arm position collectively represent "sources of cash that will be used to fund the $22.5 billion investment in OpenAI," an insider with direct knowledge told media.
That individual indicated proceeds would also support additional ventures, including SoftBank's acquisition of ABB's robotics unit.
The disposal was unrelated to mounting concerns surrounding AI sector valuations, the source emphasized.
SoftBank remains deeply embedded in multiple AI initiatives leveraging Nvidia technology, notably a $500 billion Stargate data center project on American soil.
Nvidia stock declined over 2% following the disclosure.
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