In a candid revelation, Masayoshi Son, the founder and CEO of SoftBank Group, has stated that the company's decision to completely exit its massive stake in chipmaker Nvidia was a deeply painful, yet strategically necessary, move. The sale, worth a staggering $5.83 billion, was executed to generate immediate capital for the conglomerate's aggressive new wave of investments in artificial intelligence (AI).
The Painful Exit to Fuel an AI Ambition
Addressing the audience at the FII Priority Asia forum in Tokyo on Monday, December 2, Son expressed profound regret over the sale. He figuratively admitted to crying when he sold the shares of the world's most valuable chipmaker. "I don't want to sell a single share. I just had more need for money to invest in OpenAI and other projects," Son explained. "I was crying to sell Nvidia shares," added Japan's second-richest man.
This disclosure followed SoftBank's November announcement that it had unloaded its entire position in Nvidia. The funds are being redirected to a string of expansive AI projects that demand significant capital. These initiatives include the construction of a massive Stargate data centre in partnership with Hon Hai Precision Industry Co. (Foxconn), the acquisition of US chip designer Ampere Computing, and accelerated plans to increase investment in OpenAI by the end of the year.
Son Dismisses AI Bubble Talk, Bets on Long-Term GDP Share
During his address, the 68-year-old tech visionary also firmly dismissed the notion that the current surge in AI spending represents an investment bubble. He argued that critics of AI investment lack foresight. "People who talk about a bubble around AI investment are not smart enough," Son highlighted.
He presented a grand vision to justify the trillions of dollars being poured into the sector. Son argued that if AI eventually captures even 10% of the global gross domestic product (GDP) over the long term, the monumental returns would easily validate the cumulative spending. "Where is the bubble?" he questioned, positioning AI as a fundamental economic shift rather than a fleeting trend.
A Playful Jab from Nvidia's Jensen Huang Resurfaces
Son's emotional comment about crying brought back a memorable exchange from last year involving Nvidia's CEO, Jensen Huang. During a visit to Japan in November 2023, Huang publicly teased Son about his investment timing on stage.
After praising Son as a legendary investor who backed winners like Alibaba, Huang delivered the punchline: "You maybe many of you probably don't know this, but at one point, Masa was the largest shareholder of Nvidia." This remark highlighted the massive, missed returns from SoftBank's early exit. In a moment of playful theatrics, Son rested his head on Huang's shoulder as if weeping, to which Huang responded with mock sympathy, "It's okay. We can cry. We can cry together."
Son's latest comments underscore a strategic pivot where SoftBank is willing to endure short-term financial pain, exemplified by the lucrative Nvidia exit, to secure a dominant position in what it believes is the defining technological future of artificial intelligence.
