SoftBank founder Masayoshi Son divested the company’s entire $5.8 billion Nvidia stake on Tuesday to focus on artificial intelligence investments.
Son’s career includes significant market events, such as his net worth reaching approximately $78 billion by February 2000 during the dot-com bubble. He subsequently experienced a $70 billion personal loss as SoftBank’s market capitalization fell 98% from $180 billion to $2.5 billion.
In 2000, Son made a $20 million investment in Alibaba, a stake that grew to $150 billion by 2020.
In 2017, to establish his first Vision Fund, Son secured $45 billion from Saudi Arabia’s Public Investment Fund. Following the murder of journalist Jamal Khashoggi in October 2018, Son condemned the act but maintained SoftBank’s commitment to managing the kingdom’s capital, subsequently increasing deal-making.
Subsequent investments faced challenges. A bet on Uber resulted in paper losses for years. SoftBank also invested in WeWork, valuing it at $47 billion in early 2019. WeWork’s IPO plans collapsed after a filed S-1 document, leading to $11.5 billion in equity losses and $2.2 billion in debt for SoftBank. Son reportedly referred to this as “a stain on my life.”
SoftBank’s latest move involves selling all 32.1 million Nvidia shares. The capital will support a planned $30 billion commitment to OpenAI and potential participation in a $1 trillion AI manufacturing hub in Arizona.
The shares were sold at approximately $181.58 per share, which is 14% below Nvidia’s all-time high of $212.19. This marks SoftBank’s second complete exit from Nvidia. A previous sale in 2019 involved a $4 billion stake for $3.6 billion; those shares would now be valued at over $150 billion.
Nvidia shares decreased by nearly 3% after the disclosure. Analysts note the sale reflects SoftBank’s capital needs for AI initiatives rather than a negative outlook on Nvidia.
