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SoftBank Exits Nvidia, Redirects $5.8 Billion to OpenAI and AI Buildout

The move finances SoftBank’s near-term OpenAI commitments, intensifying scrutiny of its leverage and AI valuations.

Overview

  • SoftBank disclosed it sold all 32.1 million Nvidia shares in October for about $5.83 billion and also monetized roughly $9.17 billion of T-Mobile stock.
  • Executives said the divestment was a financing decision as SoftBank assembles cash for an up-to-$40 billion OpenAI package, with an initial $10 billion closed in April.
  • SoftBank said it will proceed with the $22.5 billion December installment for OpenAI and has removed earlier conditions tied to the tranche, while planning to syndicate part to co-investors.
  • The company detailed broader funding measures including ¥620 billion in yen bonds, $4.2 billion in foreign debt, bridge loans of $8.5 billion for OpenAI and $6.5 billion for ABB Robotics, and an expanded Arm-backed margin loan to $20 billion.
  • Quarterly net income more than doubled to about ¥2.5 trillion, buoyed by Vision Fund gains linked to OpenAI markups, as Nvidia shares slipped and SoftBank stock fell as much as 10% following the disclosure.