15h ago• 3 min read
AI Tokens Tumble After SoftBank's $5.8B NVIDIA Sale
SoftBank's $5.8 billion exit from NVIDIA to fund OpenAI investments sent shockwaves through AI tokens, with Bittensor falling 3.8% as investors reassess the sector's institutional dynamics and capital flows.
Key takeaways
💰 Institutional Shift: SoftBank sold its entire $5.8B NVIDIA position to fund a $30B+ investment in OpenAI, signaling a pivot from hardware to AI services.
📉 Sector Impact: AI tokens declined broadly, with TAO dropping 3.8% to $372, while Internet Computer fell 8.7% as risk-off sentiment dominated.
🤖 OpenAI Focus: The Japanese giant plans to invest up to $40 billion in OpenAI, betting on the ChatGPT maker's path to profitability over chip infrastructure.
⚡ Market Reaction: The move highlights TAO's sensitivity to AI sector shifts, though SoftBank's pivot underscores continued institutional faith in AI's future.
Deep dive
SoftBank's strategic exit from NVIDIA represents a significant shift in institutional AI investment philosophy, moving from hardware infrastructure toward direct AI service providers like OpenAI.
The $5.8 billion divestment, executed in October 2025, was part of a broader capital reallocation to fund SoftBank's massive $30+ billion commitment to OpenAI, including participation in the ambitious Stargate project.
While this created immediate selling pressure across AI tokens, with Bittensor experiencing a 3.8% decline, the move actually reinforces the long-term institutional conviction in artificial intelligence.
For Bittensor, this development is particularly relevant as it positions the decentralized AI network as an alternative to centralized players like OpenAI, potentially benefiting from the growing institutional focus on AI infrastructure and services.
Polaris insights AI-generated
Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.
