SoftBank Group sold its entire stake in Nvidia for $5.83 billion to help bankroll artificial intelligence investments, even as investors question the amount of capital pouring into a technology with uncertain returns.
Founder Masayoshi Son has been unwinding positions to pay for a plethora of AI projects, from Stargate data centers with OpenAI and Oracle to robot manufacturing sites in the United States. The Nvidia exit coincides with a growing debate about whether spending by big tech firms like Meta Platforms and Alphabet ¡ª expected to surpass $1 trillion in coming years ¡ª will produce commensurate returns.
SoftBank¡¯s stock slid more than 10% in Tokyo on Wednesday, highlighting how investors remain nervous about lofty tech valuations. Nvidia¡¯s shares slid as much as 3.9% in U.S. trading, after climbing 48% this year through Monday¡¯s close.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.