SoftBank doubles down on AI amid warnings from ‘Big Short’ investor

Softbank sells its entire stake in Nvidia – But not for the reasons you might think.

In its earnings statement issued on Tuesday, the Japanese group said it sold 32.1 million shares of Nvidia stock in October for $5.83 billion.

At first glance, this could be read as a sign that Nvidia’s high valuations are causing SoftBank some concern. And if SoftBank — which It poorly pumped $18.5 billion into WeWork Only to eventually be valued at $2.9 billion – tempering its usual optimism regarding its investments, so retailers should take notice.

In addition to these concerns Comments by Michael Burry — who bet against subprime mortgages before they caused a full-blown financial crisis in 2008 — on major AI companies.

Puri wrote on Monday in A Share on X Those companies “underestimate the depreciation value” of AI chips, which “artificially boosts profits – one of the most common scams of modern times.” CNBC was unable to independently confirm that the companies were doing this.

However, this does not appear to be SoftBank’s concern. A person familiar with the group’s sale told CNBC that it had nothing to do with AI ratings. Conversely, money from Nvidia’s chip offload will be redirected to SoftBank’s $22.5 billion investment in OpenAI, the person said.

Perry said in his post that he would reveal “more details” on November 25, and urged readers to “stay tuned.” That may not be enough temptation for SoftBank CEO Masayoshi Son.

— CNBC’s Yun Li, April Roach and Dylan Butts contributed to this report.