The Japanese technology conglomerate SoftBank is executing a dramatic strategic shift, moving capital away from semiconductor investments and toward the physical infrastructure required to power artificial intelligence. This portfolio realignment represents a fundamental new wager on the technology sector’s future, with investors now exposed to a company focused on building the foundational layers of the AI ecosystem.
Financing the Shift: Exiting Nvidia, Doubling Down on OpenAI
This new direction is being funded by a radical simplification of SoftBank’s holdings. A filing with the U.S. Securities and Exchange Commission (SEC) on February 17 confirmed the complete divestment of its stake in chipmaker Nvidia. The sale of 32.1 million shares generated approximately $5.8 billion in proceeds.
That capital is being channeled almost directly into OpenAI, the creator of ChatGPT. SoftBank had already committed $30 billion to the AI firm, securing an 11 percent ownership stake. The gains from this position are substantial: SoftBank’s quarterly report dated February 12 disclosed an unrealized book gain of $19.8 billion from this single investment. This turnaround contributed significantly to a quarterly profit of nearly 250 billion yen, a stark contrast to the loss reported in the same period a year prior.
Addressing AI’s Power Demand
A central pillar of SoftBank’s strategy involves securing the enormous energy supply needed for advanced AI data centers. The company is leading a consortium to develop a major natural gas power project in the United States, with an estimated investment of $33 billion. As reported by Nikkei Asia, this initiative is among the first concrete projects to emerge from a trade agreement signed between Japan and the U.S. last year.
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The project reflects the skyrocketing power requirements of AI infrastructure. Other Japanese industrial leaders, including Toshiba and Hitachi, have expressed interest in participating. According to Bloomberg, this venture is part of an initial tranche of up to $36 billion that Japan intends to direct into U.S. energy and resource projects, backed by government loans and guarantees.
A Lofty Valuation and a Clean Break
SoftBank’s concentrated bet on OpenAI may see further near-term paper gains. Reports from Investing.com and Bloomberg suggest the AI company is close to finalizing a new funding round targeting $100 billion. This investment would propel OpenAI’s valuation to over $850 billion.
Concurrently, the corporate entanglement between SoftBank and Nvidia has been fully unwound. In the fourth quarter, the chip giant sold its entire stake in Arm Holdings, a SoftBank subsidiary. This move severs a complex relationship that began in 2020 with Nvidia’s failed attempt to acquire Arm.
By securing energy for data centers and taking a massive position in the generative AI market leader, SoftBank is positioning itself across the entire AI value chain. The ultimate validation of this high-stakes strategy will depend on whether OpenAI’s soaring valuation can be justified by tangible increases in revenue and earnings in the months ahead.
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