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SoftBank Sells $5.83 Billion Holding in Nvidia, Redirects Cash to OpenAI

Key Takeaways

  • ​SoftBank has sold its entire $5.83 billion stake in Nvidia, which ends its link with the US chipmaker as it focuses on AI investments;
  • The company plans to invest up to $40 billion in OpenAI, using bonds, foreign debt, and loans to finance the deal;
  • Alongside its OpenAI focus, SoftBank is backing ABB Robotics as part of its goal to develop advanced AI and robotics technologies.

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SoftBank Sells $5.83 Billion Holding in Nvidia, Redirects Cash to OpenAI

SoftBank Group has sold its entire holding in Nvidia, which ended its connection with the US chipmaker that helped drive the recent rise in artificial intelligence (AI) hardware.

The Japanese company is currently focusing on OpenAI even as it deals with financial losses and questions about its leadership.

In a report released on November 11, SoftBank said it and one of its asset management units "sold all of Nvidia Corporation shares that they had owned, for $5.83 billion".

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To raise the money, SoftBank issued ¥620 billion (about $4.1 billion) in yen-denominated bonds, another $4.2 billion in foreign debt, and secured short-term loans worth $8.5 billion for OpenAI and $6.5 billion for ABB Robotics.

Chief Financial Officer Yoshimitsu Goto explained during a press briefing that the company relied on its existing assets to support the new investment.

The company’s filing shows that an agreement was made on March 31 to invest up to $40 billion in OpenAI. Of that, $30 billion would come from SoftBank’s funds. It has already provided $10 billion in April, with an additional $22.5 billion expected in December.

SoftBank also announced plans involving ABB Robotics as part of its strategy to advance AI technology. The company said these steps align with its long-term mission to "realize artificial super intelligence (ASI) for the advancement of humanity".

Recently, Amazon Web Services (AWS) signed a $38 billion agreement with OpenAI. What is the goal of the deal? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
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Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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