Hajra Naz
Japanese tech giant SoftBank announced Tuesday that it sold its stake in Nvidia. The sale raised $5.8 billion to fund other investments. The move highlights SoftBank’s growing focus on OpenAI, the maker of ChatGPT.
SoftBank also reported its profit nearly tripled in the first half of this fiscal year compared to a year ago.
SoftBank’s Financial Performance
From April to September, SoftBank’s profit soared to about 2.5 trillion yen ($13 billion). Its sales rose 7.7% year-on-year to 3.7 trillion yen ($24 billion).
SoftBank’s results fluctuate because it invests in a wide range of ventures. Many of its tech-focused Vision Fund investments have recently paid off.
Read More: OpenAI, Oracle, SoftBank Build Five New AI Data Centers In U.S
AI Investments and Stargate Project
In February, SoftBank Chairman Masayoshi Son joined President Donald Trump, OpenAI CEO Sam Altman, and Oracle’s Larry Ellison to announce a major AI project called Stargate, with investments up to $500 billion.
SoftBank has invested tens of billions in OpenAI. The two companies also plan to expand AI services in Japan.
Selling the Nvidia stake shows Son’s shift in strategy. It also nets SoftBank a healthy profit from Nvidia’s recent surge in value.
Nvidia’s Market Success
Nvidia recently became the first $5 trillion company, just three months after hitting $4 trillion. The company plans a $100 billion investment in OpenAI, adding at least 10 gigawatts of AI data center capacity to boost OpenAI’s computing power.
The AI boom has driven Nvidia and other tech giants’ share prices this year. Critics warn that stock prices have risen too fast, comparing it to the 2000 dot-com bubble.
SoftBank’s Ongoing Tech Investments
SoftBank and Nvidia maintain strong ties. Many SoftBank ventures rely on Nvidia technology.
SoftBank also invests in Arm Holdings and Taiwan Semiconductor Manufacturing Co., which, like Nvidia, benefit from the AI growth.
SoftBank’s stock nearly doubled in the past year. Shares gained almost 2% Tuesday. Nvidia’s shares fell 1.3% in premarket trading but had jumped 5.8% Monday.
Read More: SoftBank + Intel: $2B Deal That Could Reshape AI Chips
FAQs
1. Why did SoftBank sell its Nvidia stake?
SoftBank sold Nvidia shares for $5.8B to redirect funds toward OpenAI and other AI-focused investments.
2. How much profit did SoftBank report for H1 2025?
SoftBank reported a profit of 2.5 trillion yen ($13 billion), nearly triple from a year earlier.
3. What is the Stargate project?
Stargate is a $500 billion AI initiative involving SoftBank, OpenAI, Oracle, and the U.S. government to advance AI technology.
4. How is Nvidia contributing to OpenAI?
Nvidia plans a $100 billion investment, adding 10 gigawatts of AI data centers to expand OpenAI’s computing power.
5. What other tech companies does SoftBank invest in?
SoftBank also invests in Arm Holdings and Taiwan Semiconductor Manufacturing Co., both benefiting from AI growth.
