SoftBank's Masayoshi Son made a rare admission of vulnerability Monday, saying he "was crying" to sell the firm's entire $5.8 billion Nvidia stake in November. The emotional confession reveals the painful trade-offs even tech's biggest risk-takers face as AI investment fever reaches new heights, forcing Son to liquidate his chip goldmine to fund bigger bets on OpenAI and data centers.
SoftBank founder Masayoshi Son doesn't usually show weakness, but even the legendary risk-taker has his breaking point. Speaking at a Tokyo forum Monday, Son revealed the emotional toll of liquidating his firm's entire Nvidia position, worth $5.83 billion, to bankroll his next AI gamble.
"I don't want to sell a single share. I just had more need for money to invest in OpenAI and other projects," Son told the FII Priority Asia forum. "I was crying to sell Nvidia shares."
The confession offers rare insight into the calculations forcing even deep-pocketed investors to make painful choices as AI investment demands skyrocket. SoftBank disclosed the Nvidia sale in November, sending ripples through markets already jittery about institutional selling pressure on the chip giant.
But Son's tears weren't just about missing out on Nvidia's continued rally - they reflected the opportunity cost of choosing between two AI goldmines. The sale funded SoftBank's broader AI war chest, including expanded investments in OpenAI, work on Stargate Project data centers, and the $6.5 billion acquisition of chip designer Ampere Computing.
"We're all in on OpenAI," Son said earlier this year, predicting the ChatGPT maker would become the world's most valuable company. That bet's already paying dividends - SoftBank's second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), driven largely by valuation gains in its OpenAI holdings.
The numbers reveal why Son made his tearful trade. While Nvidia shares have surged over 180% this year, OpenAI's private valuation has exploded from $29 billion to over $150 billion in less than two years. For Son, betting on the AI software layer trumped owning the hardware powering it.
Yet the Nvidia sale also highlights broader pressures facing AI investors as capital requirements balloon. SoftBank Vision Fund, once flush with Saudi sovereign wealth, now needs fresh ammunition for an AI arms race where single companies demand billions in funding rounds. "The Japanese giant could potentially increase its investment in OpenAI depending on performance and valuation," according to sources familiar with the matter.
Son used Monday's forum to push back against growing AI bubble concerns, dismissing skeptics as "not smart enough." He predicted "super artificial intelligence" and AI robots would generate at least 10% of global GDP long-term, justifying trillions in current investment. It's classic Son bravado, but coming from someone who just sold his Nvidia crown jewels while crying, the confidence feels different.
The irony isn't lost on markets. SoftBank helped fuel Nvidia's early AI rally by backing the infrastructure enabling today's AI boom. Now it's liquidating that position to fund the next wave - a testament to how fast AI investment cycles are accelerating and how even prescient bets can become casualties of bigger opportunities.
Son's emotional admission reveals how AI's capital intensity is forcing even the most successful tech investors to make wrenching choices between proven winners and future moonshots. His tears over selling Nvidia while doubling down on OpenAI encapsulate the high-stakes gambling defining today's AI race - where yesterday's goldmines become tomorrow's funding sources. As AI bubble fears mount, Son's bold predictions about super intelligence generating 10% of GDP will either vindicate his strategy or become a cautionary tale about the dangers of falling too hard for the next big thing.
