Japanese investment giant SoftBank announced a sensational sale of Nvidia shares, a move that has generated considerable interest in the tech world. The company has sold all of its remaining 32.1 million shares in the US chipmaker Nvidia. The sale reportedly generated a total of $5.83 billion.

Why did the SoftBank Nvidia share sale occur?

SoftBank stated that this move was part of its “asset liquidation” strategy. In its earnings statement, it also announced the sale of some shares in T-Mobile for $9.17 billion, in addition to the sale in October. These sales are critical to funding the company’s new investments in artificial intelligence.

SoftBank faced significant capital needs in the October-December quarter. According to the report, the company needed $30.5 billion in funding for this period. The proceeds from the Nvidia shares will support its investment budget, which includes $22.5 billion for OpenAI and $6.5 billion for Ampere.

This successful sales strategy also significantly benefited SoftBank’s technology-focused venture capital fund, the Vision Fund. Thanks to the proceeds from these stock sales, the Fund reported a remarkable $19 billion profit. This doubled the company’s second-quarter profit.

While this sale may be surprising to investors, it’s not SoftBank’s first sale of Nvidia shares. The company sold the shares it acquired in 2017 in 2019. Despite this, SoftBank’s activities remain strongly linked to Nvidia technology. The planned $500 billion Stargate project for data centers in the US is a prime example of this connection.

So, what are your thoughts on this strategic move by SoftBank? Share your thoughts with us in the comments!