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Good point to cash out in my opinion. Extremely likely you can buy NVDA back cheaper in the future.
This should be the news of the day, or even should I say, the news of the last 3 years.

The bubble is starting to crack.

I was a skeptic in AI crapware, but if SoftBank is selling Nvidia to the moon is almost a guarantee
I'm sorry, why is this on Hacker News?

I'm on investing subreddits all the time, and I'd expect it there.

But I don't see how this is "anything that gratifies one's intellectual curiosity."

If there wasn't an AI bubble narrative, then sure, this this would gratify my curiousity. But now I don't see it, not even in the most charitable way.

I'm curious what the line of thinking is on how this does, in some way, gratifies one's intellectual curiosity.

Edit: I figured that I'd get all the downvotes. I've been here long enough to understand the social dynamics of the site. Funnily enough, I was more in the "Hacker News" demographic between 2015 and 2023. Since then, it has shifted a little. Nowadays, I have to force myself a bit to sound more positive than I actually am in order for my comments to be appreciated (in terms of upvotes, as I do view that as a form of social feedback), and that is fine.

I understand that this post gives bad vibes or sounds perhaps a bit mean? I am not intending it that way. I really just don't get it. Look at my comment history, I sometimes ask questions like this, but not that often. I suspect I'm not the only one in this.

Note the first line:

> SoftBank said Tuesday it has sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion as the Japanese giant looks to capitalize its “all in” bet on ChatGPT maker OpenAI.

They are switching gears, not exiting, folks.

Should we just take them at their word? All we know is that they sold all of their Nvidia.
They don't see upside in Nvidia clearly or they wouldn't have completely sold out. If they don't think the risk/reward is worth it why should anyone else? Eventually you'll run out of greater fools.
As usual also "sold its entire stake" can be written as "investors eagerly bought SoftBank's entire stake of nvidia".
Also relevant:

> “This should not be seen, in our view, as a cautious or negative stance on Nvidia, but rather in the context of SoftBank needing at least $30.5bn of capital for investments in the Oct-Dec quarter, including $22.5bn for OpenAI and $6.5bn for Ampere

> That amounts to “more in a single quarter than it has invested in aggregate over the two prior years combined,” Bulk said.

> … Following the recapitalization and SoftBank’s $22.5 billion investment into the ChatGPT maker, the Japanese firm’s 4% ownership of OpenAI will increase to 11%.

It sounds like Nvidia was played out for them and they’re aggressively trying to get in on OpenAI so they can exit sometime after retail investors get in

But they didn't think the Nvidia stake would make more $ otherwise they would still retain a percentage, right?
Well the news should probably be "sold its entire stake", as in it's already over and done.
We will find out in next few months but I predict they had a great exit at the high. As the AI bubble seems to be deflating even if not popping with the largest economy in the world insulating itself from western tech and AI.
> SoftBank Vision Fund recorded a $3.3 billion return on its Nvidia investment. The fund's February 2019 closeout of its Nvidia position preceded the AI boom and Nvidia's rapid transformation into one of the world's most valuable companies.

Masayoshi Son has form when it comes to calling the top of the market with this particular company.

It looks more like a strategic reallocation than a panic exit. Nvidia has already delivered outsized returns, while OpenAI represents a leveraged bet on the next layer of the AI stack - software and services rather than hardware. SoftBank probably sees more upside (and influence) there, even if the risk is higher
There is no craziness here. It's a "Value rotation". Sell high, buy low, repeat. Capture a higher rate of return.

OpenAI just completed separating it's non-profit and for-profit restructuring: https://www.cnbc.com/2025/10/28/open-ai-for-profit-microsoft...

This probably means the for-profit structure will be going public in 2026, and there is probably a last private round happening.

Clearly they don't see upside in Nvidia, the stock single handedly keeping this bubble intact, nothing to worry about of coarse.
I personally wouldn’t put much value on this event. I’ve never been impressed by SoftBank’s investment decisions. Of course, it has a good amount of money. But its decisions on ARM, WeWork, etc., have made it seem like it’s just (uninformed/underinformed) gambling.
ARM turned out to be a good investment for them, but I think overall you're right. They haven't really done any better than index funds (as is usual).
Makes no sense to sell their entire position on a key infrastructure player, if you’re going all in on ai. That’s very odd.
"Makes no sense" is basically SoftBank's motto though.
It makes sense when you know the semi industry has always been cyclical and this insane level of spending can't be fueled on debt and VC cash forever. Masayoshison is out and now your 401ks are holding the bag, he'll get one last cashout when Open"AI" IPOs too with his winnings.
The surprising thing to me here is that $5.83B was their entire stake, after NVDA had gone up more that 1000% in the the last 5 years.
yeah it made me wonder what all this fuss is about. perhaps im numb to big numbers now. but $6b is a miniscule fraction of NVDA.
Fun thought experiment: If a company had a product with infinite value it would be irrational to allocate capital to shares since you could own the product instead. So the share price might even go down (it's hard to know what role money will play in a post-agi society).

A smaller scale version of this might be happening here. Or it could be a bubble. Either way it's interesting!

Obviously we’re not ever going to see “infinite value”. I think it’s instructive to think of this on the margin or in terms of limits: would a putative AGI have an inflection point at which more of it produces less value, and even if it’s productive capacity were high, it could not be “infinitely high” (which would make it an economic absurdity).

Additionally, for the AGI producer (or platform host), there would have to be some way of price function that would cover the costs of operating or providing the AGI service.

Thus, a more realistic look at this is “purchasers of AGI would have no reason to purchase “more” of it beyond a certain threshold, after which it is no longer useful to their ends, however purchasing shares of the AGI producer would expose them to value from new customers who could use it better”

By low, sell high. Any Nvidia shareholders would be foolish not to sell at least part of their holdings right now. Don’t ride the bubble to the bottom.
When money is growing on trees, pick it.

(That doesn't necessarily mean sell it all. But HODL can get you broke. It's prudent to take some juicy gains while they're available.)

You could make a lot of money, historically, by taking positions in opposition to Softbank.
Probably not bad move. How much upside Nvidia has left? And on other side how much can it go down? At point when you do not see them moving much more up selling is the logical conclusion.
I sold third at 180. I have seen it happen so many times in 50 years. You sit on your pile of gold and just watch it slowly disappear.

But also selling ALL is a bad move, says one who sold all of Nokia at 1000 markka in 1996.

You're thinking like a lowly retail investor who can only spend his own money. Softbank spends other people's money. They have to show some profits now and then to make their financials look good and thereby attract more funding.
If virtualization and cloud computing has shown us anything, it's that software is more profitable than hardware.

The question is: now that Nvidia is the new Intel, is OpenAI the new Microsoft?

Softbank clearly thinks so.

"All in on OpenAI"

Hahah! Fucking hell, openai is going to fail big time, they have nearly a 1,5 TRILLION USD in debt. There is no way they can handle that, their only option is to cozy up with trumo and make the tax payers pay for all that.

In the game of musical chairs, there is no official moment when players need to get in position to reach the closest chair. One second there is music and another second later there isn't. However, the that period exists if you can look at the relevant signs: the host hand and body in relation to the music record player.

No AI player will admit to be positioning for a sector collapse but it would be naïve to believe that anyone close to ground zero isn't planning contingency plans and are just coasting in the golden age of AI. And those who have the most skin in the game are certainly the ones most incentivise to do so while denying their true intentions.

LLMs are going no where but the reality of them not being the civilisation shifting money makers people have hyped them up to be is undeniably setting no matter what the AI astroturfers hiding in HN tell you. People have been jumping off the train or positioning to reach the closest chair when the music stops. Not long ago 2023, the world bubble was just whispered here. 2 years later it has hit mainstream and has been uttered by people holding the money bags. It might be a dream or it might not.

The difference is that, if you were in denial, now you are seeing signs that are much harder to deny. And we should expect the upcoming signs to be harder and harder, until the number of people denying reaches to zero right as the bubble fully bursts and the AI startups layoffs begin.

Would be interesting to have a game of musical chairs where the longer the game goes on, the more each player gets if they grab a chair. And N-1 players get a chair still.
I wonder if there are people (with money) who have a really good grasp on this market (hardware I mean). For example you could have sold NVDA in August, not much lower than current price, and bought SNDK and 5x-ed your money in 3 months.
5X is a terrible return if you have a magic orb that can tell you the future.
It’s difficult to imagine them generating enough profit to support their current valuations.