SoftBank Group recently cashed out its entire $5.8 billion stake in Nvidia, prompting speculation about an AI bubble. CEO Masayoshi Son explained this strategic move at the FII Priority Asia forum, stating it was necessary to finance a significant bet on OpenAI and other AI projects. He expressed reluctance, saying, “I was crying to sell Nvidia shares,” as SoftBank parted ways with Nvidia at approximately $181.58, 14% below its all-time high of $212.19. This marks SoftBank’s second complete exit from Nvidia, having sold a $4 billion stake in 2019. The recent divestment enables the firm to invest more deeply in AI initiatives, including a $30 billion commitment to OpenAI and a potential $1 trillion AI manufacturing hub in Arizona. Despite market reactions, including a 3% drop in Nvidia shares, Son dismissed concerns about an AI bubble, predicting that AI will significantly contribute to global GDP in the long run.
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