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Nvidia CEO Jensen Huang recently revealed his regret over declining an offer from SoftBank CEO Masayoshi Son to finance a full acquisition of Nvidia nearly a decade ago. The revelation came during a fireside chat with Son at the Nvidia AI Summit in Japan. This missed opportunity, which cost SoftBank a potential $160 billion return, highlights the significant impact of strategic decisions in the tech industry.
Son, recognizing Nvidia's potential in the rapidly growing field of artificial intelligence (AI), believed the market undervalued the company. He offered to lend Huang the necessary funds to purchase Nvidia outright. At the time, SoftBank held a 5% stake in Nvidia, which Son later sold for less than $4 billion due to market pressures. Today, that same stake would be worth approximately $160 billion, representing a staggering missed opportunity even for SoftBank, known for its successful investments in companies like Alibaba.
Huang's regret highlights the dynamic nature of the technology sector and the challenges of predicting future growth. While Son's offer seemed risky at the time, it ultimately would have yielded an exceptional return. This incident serves as a reminder that opportunities can arise unexpectedly and that seemingly risky ventures can lead to significant rewards. The missed opportunity also underscores the importance of strategic foresight in the tech industry, as well as the potential consequences of short-term market pressures on long-term investment decisions.
Beyond the financial implications, the story highlights the close relationship between Nvidia and SoftBank. Despite the past missed opportunity, both companies are now collaborating on building Japan's first AI infrastructure. This partnership brings together SoftBank Corp, Japan's leading cloud provider, with other tech players such as GMO Internet Group, Highreso, KDDI, Rutilea, and SAKURA Internet. The project aims to transform industries in Japan, including robotics, healthcare, automotive, and telecom, demonstrating the continued collaboration and shared vision for the future of AI between the two companies.