Japanese tech giant SoftBank announced it has sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion.
The sell-off comes as the Japanese company aims to capitalize on its ‘all-in’ gamble on ChatGPT creator OpenAI.
Softbank disclosed that it sold 32.1 million Nvidia shares in October.
During an earnings call with investors, SoftBank’s Chief Financial Officer, Yoshimitsu Goto, confirmed the stake sales were part of the firm’s strategy for “asset monetization.” “We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength. So through those options and tools, we make sure that we are ready for funding in a very safe manner.”
In Softbank’s latest earnings report, the company announced that its profit has doubled, “The reason we were able to have this result is because of September last year, that was the first time we invested in OpenAI,” said Goto. He further noted that OpenAI’s recent valuation of $500 billion is among the highest worldwide based on fair value.
SoftBank also disclosed that it sold part of its T-Mobile stake for $9.17 billion.
Nvidia shares declined 0.95% in premarket trading on Tuesday, while SoftBank shares rose nearly 2%.
By CEO NA Editorial Staff
