• SoftBank Group Corp (SFTBY) divested its entire 32.1 million-share stake in Nvidia Corp (NVDA) for approximately $5.8 billion in October 2025, as disclosed in an SEC filing and quarterly earnings.
  • The proceeds are earmarked to fund major investments in OpenAI and AI infrastructure, including the $500 billion Stargate data center project in the U.S.
  • The sale reflects capital reallocation amid AI sector overheating concerns, with Nvidia hitting a $5 trillion market cap in late 2025 after reaching $1 trillion two years prior.

SoftBank Group Corp has sold off its entire stake in Nvidia Corp, a move that underscores the Japanese investment giant's aggressive pivot toward artificial intelligence. According to an SEC filing and the company's quarterly earnings report, SoftBank disposed of 32.1 million shares in October 2025 for roughly $5.8 billion. CFO Yoshimitsu Goto confirmed the transaction, stating it supports SoftBank's strategic priorities in AI, as the firm seeks to reallocate capital from mature holdings to high-growth ventures.

Efforts to bolster its AI portfolio have hit a new stride with this sale. The funds are expected to flow into OpenAI, where SoftBank is participating in a $22.5 billion follow-on round at a $260 billion pre-money valuation, and into the massive Stargate AI data center initiative in the United States. Without such capital injections, SoftBank might struggle to keep pace in the fiercely competitive AI landscape, according to people familiar with the matter. The company's market capitalization tripled since the fiscal year start to a record high in October 2025, enabling asset sales like this and earlier dispositions of $9.2 billion in T-Mobile (TMUS) shares and partial Deutsche Telekom (DTEGY) holdings for $2.37 billion.

Nvidia shares faced short-term pressure post-announcement, but analysts view the sale neutrally. "This is about funding needs, not a bear signal on Nvidia," said Rolf Bulk, a tech analyst, noting that SoftBank's decision aligns with broader trends of surging demand for AI chips and infrastructure. The chipmaker had soared to a $5 trillion market cap in late 2025, driven by relentless appetite for its processors, yet concerns about sector overheating have prompted some investors to monetize gains at peaks. SoftBank previously sold a $4 billion Nvidia stake in 2019 for $3.6 billion, missing out on the subsequent AI-driven rally—a history that adds a layer of scrutiny to CEO Masayoshi Son's high-risk bets, which include past wins like Alibaba and losses like WeWork.

In the short term, the sale enables SoftBank to deploy $30.5 billion in Q4 2025 investments, including the OpenAI funding and a $6.5 billion acquisition of Ampere Computing (A). Long-term, it positions SoftBank as an AI platform leader through its ownership of Arm Holdings (ARM) and partnerships with OpenAI, aiming for "artificial superintelligence." However, risks loom if chip demand persists and SoftBank repeats its 2019 misstep of exiting Nvidia too early. The firm has also expanded margin loans on Arm and committed to the Stargate project, signaling a deep commitment to AI despite market volatility. Attempts to reach Nvidia for comment were unsuccessful, but industry watchers note that such moves are becoming more common as firms jockey for position in the AI gold rush.