This article first appeared on GuruFocus.
SoftBank Group (SFTBY, Financials) founder Masayoshi Son said he was crying when the company sold its entire Nvidia holding, describing the move as a reluctant but necessary step to finance the conglomerate’s next round of artificial intelligence investments.
Speaking at the FII Priority Asia forum in Tokyo, Son addressed SoftBank’s November disclosure that it divested its Nvidia shares for $5.83 billion. He said the firm would have preferred to keep the position but needed liquidity for major AI initiatives, including increased backing of OpenAI and large-scale data center development. Son said SoftBank is all in on OpenAI and continues to view the company as a potential future global leader in valuation.
The Nvidia sale follows a year of heightened AI activity for SoftBank, which has launched the Stargate Project data center effort and acquired U.S.-based chip designer Ampere Computing. The company has also signaled the possibility of deeper investment in OpenAI depending on valuation and performance in upcoming financing rounds.
SoftBank reported second-quarter net profit of 2.5 trillion yen, more than doubling year over year, driven partly by gains from its OpenAI-related holdings. Son dismissed concerns that the recent surge in AI investment reflects a bubble, arguing that advances in artificial intelligence and robotics could eventually add at least 10% to global GDP and justify trillions of dollars in capital deployment.
