SoftBank Bets Big on AI, Ignoring Caution from ‘Big Short’ Investor

Published: 12 Nov 2025

Author: Precedence Research

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By selling its 32.1 million Nvidia shares in October for $5.83 billion, SoftBank Group, one of the world's top chipmakers, has taken on the risk of heavily reinvesting in artificial intelligence initiatives. SoftBank's growing confidence in AI's long-term potential is evident in this action. In large part due to profits from its OpenAI investment, the sale also increased the company's quarterly profits, supporting its strategic shift toward next-generation AI innovation. This marks one of the most strategic portfolio shifts in recent years. Softbank is clearly positioning itself as a core enabler of the AI economy.

SoftBank is now focusing on developing what it calls physical AI under CEO Masayoshi Son's vision, going beyond software to include robotics, automation, and cutting-edge hardware. One significant project is the enormous Stargate, estimated to cost $500 billion. Its goal is to create a large-scale AI infrastructure, including robotic systems and strong data centers. This demonstrates SoftBank's endeavor to take the lead in the global AI ecosystem. The company believes that blending hardware and software will be the next evolutionary phase of AI. Such ambitions could reshape global industrial automation. 

However, analysts and investors are concerned about the company's aggressive approach. Michael Burry, a hedge fund manager, is among those who have cautioned about the possibility of an AI bubble, arguing that the tech industry's valuations are getting out of control. Despite doubling down elsewhere, selling Nvidia shares at a peak has sparked rumors that even SoftBank sees signs of market overheating.

SoftBank’s decision represents a high-risk, high-reward scenario. If AI continues its explosive growth, the company stands to gain enormously. But with heavy investments concentrated in a few key areas, any delays, regulatory hurdles, or technological setbacks could cause significant losses. The Vision Fund’s previous struggles have made investors more cautious about SoftBank’s bold bets.

All things considered, SoftBank's renewed emphasis conveys a clear message: integrated AI systems that integrate hardware data and intelligent automation are the way of the future. SoftBank is placing a large wager that its timing will pay off even though many wonder if this surge is a sign of real progress or just another speculative wave. The world will be watching to see if this AI risk leads to another market correction or the next technological revolution. In either case, Softbank's action will shape how investors view AI for years to come. This move solidified Masayoshi Son’s legacy as one of the boldest tech visionaries of our time.