SoftBank Group has stirred debate across global financial markets after its founder and Chief Executive, Masayoshi Son, sold the company’s entire $5.8 billion stake in Nvidia to redirect capital toward major artificial intelligence initiatives.

The move, confirmed on Tuesday, marks a significant shift in the investment strategy of Son, who is widely known for making bold and unconventional bets throughout his career.

Instead of balancing exposure, the tech magnate appears to be channeling funds into new large-scale AI ventures, including a proposed $30 billion backing for OpenAI and participation in a planned $1 trillion AI manufacturing hub in Arizona.

Son’s decision did not go unnoticed, as Nvidia shares dipped nearly 3% shortly after the sale was disclosed.

Analysts have stressed that the divestment should not be interpreted as a loss of confidence in Nvidia’s long-term prospects.

Instead, it reflects SoftBank’s need for liquidity as it aims to secure a leading position in the intensifying global AI race.

Masayoshi Son has long been known for his risk-taking approach. During the dot-com era, his net worth surged to around $78 billion before a dramatic market collapse erased most of it.

Yet one of his most celebrated investments—a $20 million stake in Alibaba in 2000—eventually soared to a value of roughly $150 billion, cementing his reputation as a visionary investor.

However, not all of Son’s bold commitments have yielded positive returns. SoftBank faced steep losses following its heavy investment in WeWork, after the co-working company’s troubled IPO attempt and subsequent restructuring.

Similarly, earlier investments in Uber and other high-growth firms experienced prolonged volatility before stabilizing.

This latest Nvidia exit is not the company’s first. In 2019, SoftBank sold a previous stake in the tech giant at a significantly lower valuation, a move that in hindsight cost the firm billions in missed gains.

With the current sale, SoftBank may have capitalized on near-peak prices, exiting at approximately $181.58 per share—close to Nvidia’s record high of $212.19.

The sale aligns with Son’s pattern of pivoting aggressively toward emerging industries he believes will dominate the future economy.

Investors are now watching closely. Some interpret the move as strategic foresight; others view it as another high-risk shift in pursuit of an AI-driven future.

Yet for Son, the decision appears consistent with his long-running philosophy of backing technologies he believes are poised to redefine global business and innovation.

Whether this marks the start of another major triumph or a renewed period of uncertainty remains to be seen. For now, markets are left to weigh Son’s instincts—just as they have many times before.

Source: Techcrunch