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“Nvidia Slips After SoftBank Unloads Entire $5.8 Billion Stake in Chip Giant” 🚨🚨🚨

SoftBank is cashing out of the AI boom’s biggest stock to double down on the company behind its most talked-about product.

In its Q2 earnings report, the Masayoshi Son-led conglomerate revealed it sold its entire $5.8 billion position in Nvidia (NVDA $193.81, -2.63%) last month. The sale, executives explained, was not a reflection on Nvidia’s performance but rather a strategic move to free up capital for its growing investment in OpenAI, the maker of ChatGPT.

Chief Financial Officer Yoshimitsu Goto said on the company’s earnings call that SoftBank owes $22.5 billion to OpenAI by year’s end to finance its equity stake — a commitment that required significant portfolio rebalancing.

“This year, the OpenAI investment is large,” Goto said. “We do need to divest our existing portfolio so that can be utilized for our financing. It’s nothing to do with Nvidia itself.”

The sale underscores SoftBank’s shift from backing chip designers to betting directly on AI application leaders. With Nvidia’s meteoric rise largely realized, SoftBank appears eager to capture the next leg of AI growth — not in hardware, but in the software and platforms driving the technology’s widespread adoption.