SoftBank sent waves through the AI business this morning by selling its entire stake in NVIDIA, the company at the center of the AI craze. According to reports, the proceeds from this sale will be used to fund a massive investment in ChatGPT maker OpenAI.
News of SoftBank’s NVIDIA (NVDA) sale was reported by CNBC earlier today. “We want to provide a lot of investment opportunities for investors, while we can still maintain financial strength,” said CFO Yoshimitsu Goto during a recent presentation.
According to CNBC sources, the $5.83 billion from SoftBank’s NVIDIA sale will be combined with cash from a T-Mobile stake sale to fund a $22.5 billion investment in OpenAI.
The announcement of SoftBank’s NVIDIA sale negatively impacted both companies’ stock prices, with shares of NVIDIA and SoftBank seeing a decline in valuation.
A SoftBank spokesperson told CNBC that the sale is not related to any concerns over AI technology or its future.
https://www.shacknews.com/article/146797/softbank-nvidia-stake-sale