SoftBank reduces Nvidia's stock in order to "all-in" on OpenAI

In order to finance a wave of AI infrastructure investments with OpenAI, SoftBank Group sold its entire $5.8 billion stock in Nvidia. CEO Masayoshi Son declared the business "all in" on the AI leader despite mounting concerns about AI capital returns. The specifics: After selling a $4 billion investment in Nvidia in 2019 for shares now worth more than $150 billion, this is SoftBank's second full exit from the chipmaker. Son disclosed that prior to 2019, CEO Sam Altman requested a $10 billion investment from him; nevertheless, Microsoft finally prevailed and became the exclusive computing partner. SoftBank's $33.2 billion investment is motivated by the CEO's belief that "OpenAI will be listed eventually..." and "will become the most valuable company in the world." Son's focused strategy has resulted in both significant gains (such as Alibaba's $20 million investment to $150 billion) and disastrous losses (such as $11.5 billion on WeWork). Massive generational investments are nothing new for Masayoshi Son, and this time he's placing his bets on the AI leader and taking them off the king of AI chipmaking. However, OAI will continue to purchase Nvidia's chips to meet its enormous computational requirements, thus the circular AI ball of money keeps expanding.