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SoftBank Sells Nvidia Stake to Fund OpenAI Investment
(MENAFN) SoftBank revealed on Tuesday that it has divested its entire holding in Nvidia, generating $5.83 billion, as the Japanese conglomerate seeks to capitalize on its "all in" bet on OpenAI, the creator of ChatGPT, according to a news agency.
The sale included approximately 32.1 million shares of the American chip manufacturer in October, as detailed in SoftBank’s quarterly filing.
In addition, the company disclosed that it had sold part of its T-Mobile shares, earning $9.17 billion.
“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” stated SoftBank’s Chief Financial Officer Yoshimitsu Goto, as reported by the news agency.
He added, “So through those options and tools we make sure that we are ready for funding in a very safe manner,” emphasizing that the shares were sold as part of the company’s “asset monetization" plan.
A source familiar with the matter told the news agency that the proceeds from the Nvidia sale, the partial T-Mobile sale, and the margin loan on SoftBank's Arm stake are all "sources of cash that will be used to fund the $22.5 billion investment in OpenAI."
The same source indicated that the funds will also support other projects, including the acquisition of ABB's robotics division.
They clarified that recent concerns over AI valuations were not related to the decision to sell Nvidia shares.
The sale included approximately 32.1 million shares of the American chip manufacturer in October, as detailed in SoftBank’s quarterly filing.
In addition, the company disclosed that it had sold part of its T-Mobile shares, earning $9.17 billion.
“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” stated SoftBank’s Chief Financial Officer Yoshimitsu Goto, as reported by the news agency.
He added, “So through those options and tools we make sure that we are ready for funding in a very safe manner,” emphasizing that the shares were sold as part of the company’s “asset monetization" plan.
A source familiar with the matter told the news agency that the proceeds from the Nvidia sale, the partial T-Mobile sale, and the margin loan on SoftBank's Arm stake are all "sources of cash that will be used to fund the $22.5 billion investment in OpenAI."
The same source indicated that the funds will also support other projects, including the acquisition of ABB's robotics division.
They clarified that recent concerns over AI valuations were not related to the decision to sell Nvidia shares.
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