SoftBank sells its entire Nvidia stock - could this be the start of the AI bubble bursting? (www.techradar.com)

SoftBank quietly exited its entire 32.1 million-share Nvidia stake, raising about $5.83 billion as part of a broader asset‑monetization push to free liquidity. Management said the cash will help fund roughly $22.5 billion earmarked for OpenAI and related AI tools and another $6.5 billion for Ampere, with additional proceeds coming from a T‑Mobile stake sale and a margin loan on ARM. Nvidia stock dipped ~2% on the news, but analysts and SoftBank execs framed the move as strategic reallocation to accelerate AI investments rather than a loss of faith in Nvidia’s role as the leading supplier of AI training/inference GPUs. For the AI/ML community the sale is a double signal: it boosts funding for model development and AI services (notably a huge infusion to OpenAI) while reminding markets that major holders will liquidate positions to fund new bets, increasing short‑term volatility. Veteran warnings about an AI valuation bubble (e.g., Pat Gelsinger) and large downside option trades tied to Nvidia and Palantir add to downside tail risks, but SoftBank’s pivot suggests the capital flow is shifting up the stack—from passive chip exposure toward owning platform and application layers (models, cloud compute, robotics acquisitions). Technically, Nvidia’s commercial fundamentals remain intact, but this episode underscores how liquidity needs and portfolio reshaping by heavyweight investors can amplify price moves and funding patterns across the AI ecosystem.