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SoftBank Sells Nvidia Stake, Boosts Profit, Eyes OpenAI Future

  • tech360.tv
  • 1 hour ago
  • 2 min read

Japanese technology organisation SoftBank Group Corp. has sold its stake in Nvidia, raising USD 5.8 billion for new investments. The move reflects SoftBank's strategic shift to focus on AI, particularly OpenAI.


SoftBank
SoftBank

SoftBank reported its profit nearly tripled in the first half of this fiscal year compared to the previous year. Profit for Apr. to Sept. soared to approximately 2.5 trillion yen, about USD 13 billion. Sales for the six-month period increased by 7.7% year-on-year, reaching 3.7 trillion yen, or USD 24 billion. SoftBank’s financial performance often fluctuates due to its diverse venture investments, including its tech-focused Vision Funds.


The organisation sold its stake in Silicon Valley-based Nvidia in Oct. SoftBank’s Chairman Masayoshi Son, President Donald Trump, Sam Altman of OpenAI, and Larry Ellison of Oracle previously announced a major investment of up to USD 500 billion in a project to develop AI called Stargate. SoftBank has invested tens of billions of USD in OpenAI, the organisation behind the artificial intelligence chatbot ChatGPT. SoftBank and OpenAI also plan to provide AI services in Japan.


Selling the Nvidia stake reflects Chairman Son’s strategic pivot and generated a substantial profit for SoftBank, benefiting from Nvidia’s recent increase in market value. Nvidia recently became the first USD 5 trillion organisation, just three months after surpassing the USD 4 trillion mark. Nvidia plans a USD 100 billion investment in OpenAI as part of a partnership, which will add at least 10 gigawatts of Nvidia AI data centres to boost OpenAI’s computing power. The chip maker and other entities excelling in AI technology have significantly contributed to this year’s rally in share prices.


Critics contend that the stock prices of these technology organisations have risen too rapidly amidst the AI enthusiasm, drawing comparisons to the 2000 dot-com bubble. Despite the sale, SoftBank and Nvidia maintain strong relations, with various ventures SoftBank invests in utilising Nvidia technology. SoftBank also holds investments in Arm Holdings and Taiwan Semiconductor Manufacturing Co., both computer chip makers greatly benefiting from the expansion of AI. SoftBank stocks have nearly doubled in value over the past year. Nvidia’s shares fell 1.3% in premarket trading; they had jumped 5.8% the previous day.


Source: AP

  • SoftBank Group Corp. sold its Nvidia stake, raising USD 5.8 billion.

  • The organisation’s profit nearly tripled in the first half of the fiscal year.

  • SoftBank is shifting its focus and investing tens of billions of USD in OpenAI. Nvidia, a USD 5 trillion organisation, plans a USD 100 billion investment in OpenAI.

  • SoftBank maintains investments in other AI-benefiting chip makers, Arm Holdings, and Taiwan Semiconductor Manufacturing Co.

 
 
 

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