SOFTBANK CASH IN ALL NVIDIA STAKE

SoftBank has dramatically shifted its AI investment strategy by selling its entire $5.8 billion Nvidia stake—along with over $9 billion in T-Mobile shares and leveraging a margin loan on its ARM holdings—to pour capital into OpenAI, signaling a strategic pivot from AI’s infrastructure layer (hardware, led by Nvidia) to the application layer (user-facing platforms like OpenAI’s ChatGPT and Sora). This move reflects a bet on where future AI value will be created, despite financial projections showing OpenAI facing severe short-term losses—estimated at $74 billion in 2028—due to its consumer-heavy, infrastructure-intensive business model, which contrasts sharply with Anthropic’s enterprise-focused approach that promises earlier profitability. While OpenAI isn’t expected to turn a profit until 2030 and is burning cash at 14 times Anthropic’s rate, CEO Sam Altman remains optimistic, forecasting hundreds of billions in revenue by 2030 and framing current spending as a necessary investment for long-term dominance in the AI race.

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