SoftBank Group Corp. has sold its remaining shares in Nvidia Corp. (NVDA), exiting a position worth approximately $5.8 billion, and announced plans to channel up to $30 billion into OpenAI, signaling a dramatic reallocation of capital toward artificial intelligence. The move, disclosed during the firm’s latest earnings communication, sent Nvidia’s stock down nearly 2% in early U.S. trading.
This marks SoftBank’s second complete exit from Nvidia, following a similar divestment in 2019. Management emphasized the sale was driven by liquidity needs to fund its OpenAI commitment, not dissatisfaction with Nvidia’s prospects. Historically, the 2019 exit proved costly: had SoftBank retained those shares, their value would now exceed $150 billion.
SoftBank’s second fiscal quarter net profit doubled year-over-year to ¥2.5 trillion ($16.6 billion), largely propelled by a ¥2.16 trillion valuation gain from its OpenAI holdings. The results marked the group’s strongest quarterly performance since Q3 2022.
Deepening ties with OpenAI have been central to SoftBank’s strategy. In March, it agreed to lead a funding round of up to $40 billion at a $300 billion valuation, followed by an initial $10 billion disbursement in April. By December, SoftBank plans to commit an additional $30 billion, including $10 billion from co-investors. The board authorized a further $22.5 billion in October, contingent on OpenAI completing a corporate restructuring to enable a future public listing. If conditions are met, total investments could reach $34.7 billion by end-2025.
OpenAI’s valuation has skyrocketed—from $157 billion last October to $500 billion in recent employee share transactions—making it one of the world’s most valuable private companies.
In January, SoftBank, OpenAI, Oracle, and partners unveiled “Stargate,” a U.S.-wide AI infrastructure project targeting $500 billion in investments. SoftBank leads financing, with CEO Masayoshi Son as chair and OpenAI overseeing operations. While progress has slowed pending broader consensus among stakeholders, OpenAI launched the first Stargate data center in Texas in October and plans five additional facilities across the Midwest. The initiative aims to add 7GW of data capacity within three years, potentially unlocking over $400 billion in investments.
The AI sector’s soaring valuations and long investment horizons have sparked debate. SoftBank’s massive capital outlays—centered on Stargate and OpenAI—pose short-term liquidity and balance-sheet pressures. Yet management argues that not investing carries greater risks. The group’s track record includes legendary wins (e.g., Alibaba) and costly missteps (e.g., WeWork). Its 2019 Nvidia exit remains a cautionary tale.
SoftBank’s stock has nearly tripled in 2025, with some investors viewing it as an OpenAI proxy. A 4-for-1 stock split, effective January 2026, aims to broaden retail participation. Key future catalysts include clarity on OpenAI’s restructuring and IPO timeline, Stargate’s rollout, and SoftBank’s ability to sustain cost-effective funding.
