Japan's SoftBank announced Tuesday that it has sold its entire stake in tech giant Nvidia for $5.83 billion.
The company explained in its financial results statement that it sold 32.1 million shares of Nvidia during October, and also sold part of its stake in T-Mobile for $9.17 billion.
SoftBank recorded gains of $19 billion in its Vision Fund during the second quarter of the fiscal year, supported by its continued investments in artificial intelligence, including its investment in ChatGPT maker OpenAI and ByBay.
The Vision Fund segment includes overall performance, along with administrative expenses and profits and losses attributable to external investors. The fund's value increased by US$4.8 billion in the company's first fiscal quarter.
SoftBank continues to push its investments in artificial intelligence (AI) through acquisitions and investments that strengthen its presence in the robotics and advanced AI sectors. AI-related revenues reached record highs in the quarter ending September 30, with year-over-year growth of 93%. The company's investment in OpenAI generated 2.157 trillion yen (approximately $14 billion) in profit during the quarter.
The company announced on Tuesday that it will conduct a four-for-one stock split by the end of the year, with the aim of making its shares more accessible to investors and expanding its shareholder base.
SoftBank's performance in the second quarter of the fiscal year:
Net profit: 2.502 trillion yen versus 206.89 billion yen expected according to LSEG consensus estimates, compared to 1.18 trillion yen in the same quarter last year.
Revenue: 1.92 trillion yen versus 1.9 trillion yen expected.
Stock market volatility due to artificial intelligence
SoftBank's stock fell last week due to concerns about an artificial intelligence bubble, with the company's market value dropping by nearly $50 billion, marking its worst weekly loss since March 2020. However, the stock has risen by more than 140% this year amid signs of recovery for the company's technology investment arm.
Last month, SoftBank approved the final payment of its $30 billion investment in OpenAI, with the condition that the investment could be reduced to $20 billion if the company does not restructure as a for-profit entity before December 31.
OpenAI recently completed a recapitalization, maintaining its structure as a non-profit organization with a controlling stake in a for-profit entity now known as OpenAI Group PBC.
SoftBank announced that it will invest an additional $22.5 billion in OpenAI through its Vision Fund 2 in December.
