SoftBank CEO goes on 'AI offensive' after selling Nvidia too soon

IT'S NO SECRET NVIDIA HAS BEEN ON A MONSTER TEAR, AND EXPRESS WAS REGRETTED AT THE COMPANY'S ANNUAL MEETING OVERNIGHT ABOUT SELLING ITS STAKE IN NVIDIA TOO SOON BUT ALSO DOUBLED DOWN ON A NARRATIVE HE'S ALSO GOING ON THE NARRATIVE. DEIDRE BOSA HERE WITH MORE DETAILS. HE'S PROBABLY NOT THE ONLY ONE THAT FEARED HE SOLD EARLY. >> Reporter: NO, BUT HE DID TAKE A TIDY PROFIT. STILL, HE WAS REFLECTIVE CALLING ENVIEDIAT FISH THAT GOT AWAY AND LOSING OUT ON AN OPEN AI INVESTMENT TO MICROSOFT. THESE WERE CHANCES MISSED, BUT OPEN AI IS NOW VALUED AT $80 BILLION, AN NVIDIA IS -- THAT'S ONE THAT'S GOT TO STING BECAUSE IT'S A $700 MILLION, WORTH SOME $160 BILLION TODAY IF SOFTBANK HAD HELD ON IT. SON WILL BE TAKING A DIFFERENT STRATEGY THIS TIME VERSUS IT'S SPRAY AND PLAY PLAYBOOK -- SPRAY AND PLAY I SHOULD SAY. MASA SON WILL BE MORE CAUTIOUS. INSTEAD OF SPREADING HIS INVESTMENTS HE'S LOOKING FOR A SMALLER FIT FOR A.R.M. MORE SOURCE SAYS STRATEGIC M & A WILL PLAY A LARGE ROLE AND SOFTBANK WILL BE MORE OF AN OPERATOR THIS TIME AROUND, A LESS TRADITIONAL INVESTOR. THIS IS THE STRATEGY, KELLY, THAT COULD BE AT ODDS WITH WHAT ACTIVIST INVESTOR ELLIOTT MANAGEMENT IS PUTTING FOR. IT NOTES THE LARGE GAP BETWEEN SOFTBANK'S LARGE ASSET VALUE, A LOT BEING A.R.M. ELLIOTT THINKS THAT COULD BE FIXED WITH A $15 MILLION BUYBACK BUT IT SEEMS SON WOULD RATHER USE ITS TAP AT ALL TO INVEST IN THE AI COMPANIES, AND AT LEAST ONE THING IS SIMILAR FROM LAST TIME WHEN HE DEPLOYED THE VISION FUND, SOME $100 BILLION. THE VC COMMUNITY AGREES THAT VALUATIONS IN AI HAVE BECOME INFLATED, SO IT'S INTERESTING TO THINK ABOUT WHAT MASA SON MAY DO. I'M TOLD IT WON'T BE SORT OF THE STRAIGHT LATE STAGE INVESTMENTS THAT WE SAW WITH THE VISION FUND, BUT, AGAIN, STRATEGIC, POTENTIALLY STRATEGIC M & A THAT

Channel: CNBC Television

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Keywords: app, business news, cnbc, digital, disrupt, funding, innovation, investors, nasdaq, nyse, online, silicon valley, startup, stock market, tech, techcheck, technology, venture, wall street

Id: 3779aAyjy_E

Length: 2min 21sec (141 seconds)

Published: Fri Jun 21 2024