403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
SoftBank sells its stake in Nvidia for almost six billion dollars
(MENAFN) SoftBank revealed on Tuesday that it has sold its full holding in Nvidia, generating $5.83 billion, as the Japanese conglomerate looks to capitalize on its significant investment in OpenAI, the company behind ChatGPT, according to reports.
The transaction involved roughly 32.1 million shares of the U.S. semiconductor firm, completed in October, as noted in SoftBank’s quarterly filings. Alongside this, the company also divested a portion of its T-Mobile shares, bringing in $9.17 billion.
“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” said SoftBank’s Chief Financial Officer Yoshimitsu Goto, according to reports.
“So through those options and tools we make sure that we are ready for funding in a very safe manner,” he added, noting that the divested shares were part of the company’s broader “asset monetization" approach.
The proceeds from the Nvidia sale, combined with the partial T-Mobile sale and a margin loan against SoftBank’s stake in Arm, will serve as “sources of cash that will be used to fund the $22.5 billion investment in OpenAI,” a source familiar with the matter told reports. The funds are also expected to support other projects, including the acquisition of ABB's robotics division.
The source emphasized that recent concerns over AI valuations did not influence the decision to sell the Nvidia shares.
Based in Tokyo, SoftBank continues to pursue multiple AI initiatives leveraging Nvidia’s technology, including a $500 billion Stargate project focused on U.S. data centers. Following the announcement, Nvidia’s stock slipped by more than 2%.
The transaction involved roughly 32.1 million shares of the U.S. semiconductor firm, completed in October, as noted in SoftBank’s quarterly filings. Alongside this, the company also divested a portion of its T-Mobile shares, bringing in $9.17 billion.
“We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” said SoftBank’s Chief Financial Officer Yoshimitsu Goto, according to reports.
“So through those options and tools we make sure that we are ready for funding in a very safe manner,” he added, noting that the divested shares were part of the company’s broader “asset monetization" approach.
The proceeds from the Nvidia sale, combined with the partial T-Mobile sale and a margin loan against SoftBank’s stake in Arm, will serve as “sources of cash that will be used to fund the $22.5 billion investment in OpenAI,” a source familiar with the matter told reports. The funds are also expected to support other projects, including the acquisition of ABB's robotics division.
The source emphasized that recent concerns over AI valuations did not influence the decision to sell the Nvidia shares.
Based in Tokyo, SoftBank continues to pursue multiple AI initiatives leveraging Nvidia’s technology, including a $500 billion Stargate project focused on U.S. data centers. Following the announcement, Nvidia’s stock slipped by more than 2%.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment