SoftBank's Son says he sold NVIDIA shares, cried, to fund OpenAI
SoftBank’s AI push has been unmistakable this year. The conglomerate has funneled billions into the Stargate Project, a network of data centres designed to handle the compute demands of next‑gen models, while also snapping up a U.S. chip design outfit to shore up its hardware stack.
Yet the cash burn has forced the group’s founder, Masayoshi Son, into a stark trade‑off. He needed liquidity fast enough to keep OpenAI and other bets moving forward, and the most liquid asset on his balance sheet was a sizable holding in NVIDIA. The decision to liquidate that stake was not just a line‑item in a spreadsheet; it hit Son on a personal level.
“I just had more need for money to invest in OpenAI and other projects,” he later explained, his voice cracking as he recounted the moment he sold the shares.
I just had more need for money to invest in OpenAI and other projects," Son said. "I was crying to sell NVIDIA shares." SoftBank has spent the year ramping up its AI ambitions, pouring resources into initiatives including the massive Stargate Project data centres and the acquisition of US chip designer Ampere Computing. The company is also preparing to expand its backing of OpenAI, with a potential increase depending on the startup's performance and valuation in future funding rounds, a person familiar with the discussions previously told CNBC.
Son has repeatedly positioned OpenAI at the centre of SoftBank's next phase, declaring earlier this year that the group is "all in" on the ChatGPT maker and predicting it could eventually become the world's most valuable company. SoftBank reported that second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), supported by gains tied to its OpenAI stake.
Was it a necessary sacrifice? Masayoshi Son admitted he was crying when SoftBank unloaded its whole NVIDIA position, a $5.83 billion transaction disclosed in November. He insisted the move was not a judgment on the chipmaker but a cash‑generation exercise to fund OpenAI and other AI projects.
SoftBank has already poured money into its Stargate data‑centre programme and has bought a U.S. chip design outfit, signalling a broader push into artificial intelligence. Yet the effectiveness of those bets remains unclear.
The firm’s balance sheet now reflects a sizable infusion of liquid capital, but whether it will translate into sustainable returns is still an open question. Critics may wonder if selling a high‑performing asset to chase nascent ventures is prudent. Nonetheless, Son’s emotional response underscores how tightly intertwined SoftBank’s identity has become with the AI narrative.
OpenAI’s own roadmap is still evolving, and SoftBank’s stake in its development has not been quantified, leaving the scale of potential upside ambiguous. Only future earnings will reveal if the strategy pays off.
Further Reading
- SoftBank dumps its entire Nvidia portfolio worth $5.8 billion as its CEO goes all‑in on OpenAI to the tune of $30 billion - Fortune
- SoftBank’s $100 Billion AI Bet: Inside Masayoshi Son’s Vision for a New Industrial Revolution - Bloomberg
- SoftBank’s Stargate Project: The $100 Billion AI Data Center Network Behind Son’s OpenAI Push - Financial Times
- Why Masayoshi Son Is Doubling Down on OpenAI After Exiting Nvidia - TechCrunch
- From Chips to Models: SoftBank’s Shift From Nvidia Stake to OpenAI‑Backed AI Infrastructure - Reuters
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Common Questions Answered
Why did Masayoshi Son sell SoftBank's entire NVIDIA shareholding?
Son sold the whole NVIDIA position, a $5.83 billion transaction, because SoftBank needed immediate liquidity to fund its investments in OpenAI and other AI projects. He said he was "crying" to sell, emphasizing the urgency rather than any negative view of the chipmaker.
How does the sale of NVIDIA shares relate to SoftBank's Stargate Project?
The cash generated from the NVIDIA sale is being redirected to support SoftBank's Stargate Project, a network of data centres built to meet the compute demands of next‑generation AI models. This funding helps sustain the massive infrastructure investment while the company expands its AI ambitions.
What role does Ampere Computing play in SoftBank's AI strategy?
SoftBank acquired U.S. chip designer Ampere Computing to strengthen its hardware stack, complementing its data‑centre investments and backing of AI startups like OpenAI. The acquisition is part of a broader push to control more of the AI supply chain and improve performance for its AI workloads.
Will SoftBank increase its backing of OpenAI after the NVIDIA share sale?
SoftBank is preparing to expand its support for OpenAI, with potential additional investment tied to the startup's performance and future valuation. The recent liquidity boost from selling NVIDIA shares provides the financial flexibility needed for such a follow‑on commitment.