Nvidia Completes Divestment from Arm Holdings, Selling Entire Stake
In a significant financial move, Nvidia has reportedly sold its entire remaining stake in Arm Holdings, the UK-based semiconductor technology company. According to regulatory filings reviewed by Bloomberg, the American chipmaking giant disposed of approximately 1.1 million shares in Arm during the fourth quarter of last year, generating proceeds of around $140 million. This transaction effectively reduces Nvidia's ownership in Arm to zero, marking a definitive end to its direct financial involvement with the company.
Background: The Failed $40 Billion Acquisition Attempt
The sale closes a complex and tumultuous chapter in the relationship between these two technology powerhouses. In 2020, Nvidia had announced an ambitious agreement to acquire Arm for a staggering $40 billion, which would have ranked as one of the largest acquisitions in semiconductor industry history. However, the proposed deal faced intense scrutiny and opposition from global regulators and key industry customers, who expressed concerns about Arm's independence. Given that Arm's chip architecture and intellectual property underpin the majority of the world's advanced semiconductors, maintaining its neutral position was deemed critical for market competition.
After prolonged regulatory battles, both parties mutually terminated the acquisition agreement in February 2022. Arm subsequently proceeded with its initial public offering, becoming a publicly traded entity separate from Nvidia's control. The recent divestment of Nvidia's remaining shares represents the final step in unwinding what was once envisioned as a transformative merger.
SoftBank's Parallel Divestment and Strategic Shift Toward AI
This development follows a related major transaction involving Arm's majority owner, SoftBank Group. In October 2025, the Japanese conglomerate sold its entire stake in Nvidia for approximately $5.83 billion. SoftBank disclosed this move in its quarterly earnings report announced in November 2025, revealing it had disposed of 32.1 million Nvidia shares. The proceeds from this sale are being strategically redirected to finance SoftBank's substantial $30 billion investment in OpenAI, through which it acquired an 11% stake in the creator of ChatGPT.
During an investor presentation last year, Yoshimitsu Goto, SoftBank's Chief Financial Officer, explained the rationale behind these asset sales. "We want to provide a lot of investment opportunities for investors while maintaining financial strength," Goto stated. "Through those options and tools, we make sure we are ready for funding in a very safe manner." He characterized the divestments as part of the company's broader "asset monetization" strategy.
Sources familiar with the matter have indicated to CNBC that the funds generated from selling Nvidia and T-Mobile shares, combined with a margin loan secured against SoftBank's stake in Arm, will serve as "sources of cash" to support SoftBank's planned $22.5 billion investment in OpenAI. Additionally, these resources are expected to fund other strategic initiatives, including the potential acquisition of ABB's robotics unit.
Historical Context: SoftBank's Evolving Relationship with Nvidia
This marks the second instance where SoftBank has completely exited its position in Nvidia. The company's Vision Fund initially invested approximately $4 billion in the chipmaker back in 2017, only to sell its entire stake in 2019. In retrospect, SoftBank founder Masayoshi Son has publicly expressed regret about this earlier divestment, describing Nvidia as "The fish that got away was big" during comments in 2024. He acknowledged that selling the holding ahead of a dramatic surge in Nvidia's share price represented a significant missed opportunity.
Until 2019, SoftBank held the distinction of being Nvidia's largest shareholder, controlling 4.9% of the company's outstanding shares. The recent transactions occur against the backdrop of SoftBank's recovery efforts, coming three years after the conglomerate reported its largest-ever financial loss.
Nvidia's Expanding Investment Portfolio in the Technology Sector
Despite divesting from Arm, Nvidia continues to maintain an active and diversified investment strategy across the broader technology landscape. The company has established significant stakes in several prominent firms, including Intel, Nokia, CoreWeave, and Synopsys. Nvidia has publicly committed to leveraging its substantial resources to accelerate the adoption and development of artificial intelligence computing infrastructure worldwide.
The simultaneous divestments by both Nvidia and SoftBank highlight the dynamic realignment occurring within the semiconductor and artificial intelligence sectors. As companies reposition their portfolios to capitalize on emerging technological paradigms, strategic partnerships and investment priorities continue to evolve rapidly.
