SoftBank Invests $4 Billion In NVIDIA, Becomes Fourth Largest Shareholder

Subject: General Tech, Graphics Cards | May 27, 2017 - 12:18 AM |
Tagged: vision fund, softbank, nvidia, iot, HPC, ai

SoftBank, the Tokyo, Japan based Japanese telecom and internet technology company has reportedly quietly amassed a 4.9% stake in graphics chip giant NVIDIA. Bloomberg reports that SoftBank has carefully invested $4 billion into NVIDIA avoiding the need to get regulatory approval in the US by keeping its investment under 5% of the company. SoftBank has promised the current administration that it will invest $50 billion into US tech companies and it seems that NVIDIA is the first major part of that plan.

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NVIDIA's Tesla V100 GPU.

Led by Chairman and CEO Masayoshi Son, SoftBank is not afraid to invest in technology companies it believes in with major past acquisitions and investments in companies like ARM Holdings, Sprint, Alibaba, and game company Supercell.

The $4 billion-dollar investment makes SoftBank the fourth largest shareholder in NVIDIA, which has seen the company’s stock rally from SoftBank’s purchases and vote of confidence. The (currently $93) $100 billion Vision Fund may also follow SoftBank’s lead in acquiring a stake in NVIDIA which is involved in graphics, HPC, AI, deep learning, and gaming.

Overall, this is good news for NVIDIA and its shareholders. I am curious what other plays SoftBank will make for US tech companies.

What are your thoughts on SoftBank investing heavily in NVIDIA?