SoftBank Founder Unloads $5.8B Nvidia Stake, Shaking Markets

SoftBank's Founder Cashes Out Entire Nvidia Stake, Rattles Market In a move that sent shockwaves through the business world, Masayoshi Son, the 68-year-old founder of SoftBank, sold his entire 5.8 billion stake in Nvidia, the US-based technology giant, to focus on artificial intelligence (AI) initiatives. This decision has raised eyebrows, given Son's reputation for taking bold bets, which have both yielded significant returns and led to substantial losses. The sale of his Nvidia stake, valued at approximately 5.8 billion, is a significant financial move, considering Son's net worth has been estimated to be around 20 billion. The sale of his Nvidia shares is expected to generate substantial capital, which will be used to fund SoftBank's AI initiatives. This move is seen as a strategic shift by Son, who has been a long-time supporter of Nvidia, having invested in the company in 2012. The market impact of Son's decision has been significant, with Nvidia's stock price experiencing a 2% decline in the wake of the news. The company's market capitalization has also taken a hit, with a 1% decline in the past 24 hours. The tech-heavy Nasdaq index has also seen a decline, with a 0.5% drop in the same period. SoftBank's decision to focus on AI initiatives is not a surprise, given the growing importance of AI in the technology industry. The company has been investing heavily in AI startups, including a 1 billion investment in AI chipmaker, Cerebras Systems, in 2020. Son's decision to sell his Nvidia stake is seen as a strategic move to focus on AI, which he believes has the potential to disrupt multiple industries. SoftBank's founder has a reputation for taking bold bets, which have both yielded significant returns and led to substantial losses. During the late 1990s dot-com bubble, Son's net worth soared to approximately 78 billion, making him the richest person in the world at the time. However, the dot-com implosion in 2000 led to a 70 billion loss for Son, which was the largest financial loss by any individual in history at the time. Son's most legendary bet was a 20 million investment in Alibaba in 2000, which he decided on after a six-minute meeting with Jack Ma. The stake would eventually grow to be worth 150 billion by 2020, transforming Son into one of the venture industry's most celebrated figures. The future outlook for SoftBank and Nvidia remains uncertain, with both companies facing significant challenges in the AI space. SoftBank's decision to focus on AI initiatives has raised questions about the company's future prospects, while Nvidia's stock price has been impacted by the sale of Son's stake. However, both companies have a strong track record of innovation and are well-positioned to navigate the challenges of the AI industry. In conclusion, SoftBank's decision to sell its entire Nvidia stake has sent shockwaves through the business world, raising questions about the company's future prospects. While the sale of Son's stake has generated significant capital for SoftBank's AI initiatives, it remains to be seen how the company will navigate the challenges of the AI industry.