Softbank’s Son Says Selling Nvidia Stake Was Necessary To Fund Ai Investments

SoftBank Group founder Masayoshi Son on Monday downplayed the decision to divest the conglomerate’s entire Nvidia holding, saying he “was crying” over letting go of the shares.

Speaking at a forum in Tokyo, Son addressed SoftBank’s November disclosure that the company sold its stake in the U.S. chip maker for $5.83 billion. He said SoftBank would not have proceeded with the sale if it did not need capital to finance upcoming artificial intelligence initiatives, including a substantial commitment to OpenAI and data center projects.

“I don’t want to sell a single share. I just had more need for money to invest in OpenAI and other projects,” Son said during the FII Priority Asia forum. “I was crying to sell Nvidia shares.”

His remarks align with analyst commentary and statements from SoftBank executives in November characterizing the sale as part of broader efforts to strengthen the SoftBank Vision Fund’s AI funding.

SoftBank has intensified its AI strategy this year with multiple efforts, including work on the Stargate Project data centers and the acquisition of U.S. chip designer Ampere Computing.

The company could also “potentially” increase its investment in OpenAI depending on the ChatGPT maker’s performance and the valuation of future funding rounds, a person familiar with the matter previously told CNBC.

Earlier this year, Son said SoftBank was “all in” on OpenAI and predicted the AI startup could ultimately become the most valuable company in the world.

Thus far, the bet has delivered some gains: SoftBank reported last month that second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), driven by valuation increases in its OpenAI holdings.

SoftBank’s sizeable AI commitments come amid rising market concerns about a potential AI bubble.

In his Monday remarks, Son pushed back on those worries, arguing that those who discuss an AI bubble are “not smart enough.”

He forecast that “super [artificial] intelligence” and AI robotics will generate at least 10% of global GDP over the long term, which he said would justify trillions of dollars invested in the technology.