SoftBank has fully divested its $5.83 billion stake in Nvidia, signaling a strategic pivot from hardware-based AI investments toward software and platform-centric ventures. The Japanese conglomerate, known for its bold bets on emerging technologies, is now channeling its capital into OpenAI, reaffirming its confidence in the generative AI sector despite the growing skepticism on Wall Street.
According to a financial disclosure released Tuesday, SoftBank and its asset management arm liquidated all of their Nvidia shares in October. This marked a decisive break from the semiconductor giant that has been instrumental in the recent AI boom, driven by demand for its high-powered GPUs. Nvidia’s stock surged over the past year as AI adoption accelerated, making SoftBank’s exit particularly notable. The proceeds from the Nvidia sale, along with a $9.17 billion partial divestment of SoftBank’s T-Mobile holdings, are part of a broader $40 billion funding strategy to back OpenAI by the end of the year.
SoftBank’s aggressive reallocation of capital underscores its shift in focus—from supplying the infrastructure that powers AI to owning a larger stake in the platforms and software that define how the technology is used. OpenAI, the creator of ChatGPT and a key player in the generative AI landscape, has seen its valuation soar in recent years, despite concerns over its financial sustainability and internal governance.
The move comes at a time when OpenAI is under increased scrutiny. The company has faced questions about its burn rate, its CEO Sam Altman’s leadership, and the long-term viability of its monetization strategies. Nevertheless, SoftBank appears undeterred. The Tokyo-based firm is doubling down on its belief that OpenAI will be a cornerstone of future digital ecosystems and a key driver of value creation in the AI sector.
This strategic realignment aligns with SoftBank’s longstanding vision of being at the forefront of transformative technologies. Its Vision Fund, launched in 2017, has previously invested in a range of AI startups, robotics firms, and digital infrastructure companies. However, those investments delivered mixed results, with some high-profile failures—including WeWork—casting doubt on SoftBank’s ability to pick winners in volatile tech markets.
By betting big on OpenAI, SoftBank is essentially placing a wager on the future of cognitive computing and artificial general intelligence (AGI). The company seems to believe that the next trillion-dollar opportunity lies not in the chips that train AI models, but in the platforms that deliver intelligent services to billions of users.
Market analysts are divided on the timing of the move. Nvidia continues to report record revenues and dominates the AI hardware space, while OpenAI is still in an early monetization phase. Critics argue that SoftBank may be exiting Nvidia too soon, potentially missing out on further gains. But supporters of the strategy suggest that the real value lies in controlling the user interface and application layer of AI, where OpenAI holds a commanding lead.
The AI industry is currently undergoing a second wave of hype and investment, driven by the rapid adoption of generative technologies across sectors from healthcare to finance. Companies are scrambling to integrate AI into their operations, creating a rich environment for platform plays like OpenAI. SoftBank’s bet reflects this paradigm shift, positioning itself to benefit not just from the infrastructure but from the services that will shape how humans interact with AI.
From a financial engineering perspective, SoftBank’s asset reallocation is also a play for liquidity and flexibility. Selling high-performing assets like Nvidia and T-Mobile allows the firm to redeploy capital into riskier but potentially more lucrative ventures. It also reduces exposure to public market volatility, giving SoftBank more control over its strategic direction.
Furthermore, this move could signal an ambition to deepen integration with OpenAI’s ecosystem. There is speculation that SoftBank may seek closer operational ties or even explore joint ventures to bring OpenAI’s capabilities into its broader portfolio of companies. If successful, this could create synergies across telecom, robotics, e-commerce, and logistics—sectors where SoftBank already maintains a significant presence.
However, SoftBank’s pivot is not without risk. OpenAI’s path to profitability remains uncertain, especially amid increasing competition from rivals such as Google DeepMind, Anthropic, and Meta’s open-source LLM initiatives. The cost of training and running large language models continues to balloon, raising questions about scalability and sustainability.
Additionally, regulatory headwinds are building. Governments around the world are beginning to draft comprehensive frameworks for AI governance, which could curtail the freedom with which companies like OpenAI operate. SoftBank’s investment could therefore be exposed to geopolitical and legal risks that are harder to quantify.
Despite these challenges, SoftBank’s gamble reflects a broader trend among global investors: an appetite for early, high-stakes positions in foundational AI technologies. As the industry matures, the race to dominate the application layer of AI intensifies, and SoftBank intends to lead rather than follow.
In summary, the sale of its Nvidia stake is more than a financial exercise—it’s a strategic repositioning. By reallocating billions toward OpenAI, SoftBank is signaling its belief that the future of value creation in the AI industry lies in software platforms and intelligent services, not just in the chips that power them. Whether this bet pays off will depend on OpenAI’s ability to translate its technological prowess into sustainable business models in an increasingly competitive and regulated environment.