The purchase could either be by Softbank, adding to Softbank’s $130 billion of debt, or it could be by Softbank’s Vision Find which is said to have got $93 billion in pledged investment but it is not clear whether any investor has actually paid over any cash.
Nvidia’s share price tripled last year and is up 28% this year. As an AI leader Nvidia conforms to the Vision Fund’s announced investment focus on trendy tech markets.
Softbank’s actual investment strategy is unpredictable – having had a huge success with Alibaba but recently writing down $1.4 billion on its Indian investments.
Although it says it’s focussed on tech, as per its investments in ARM, OneWeb, Didi, PayTm and Improbable, Softbank has also invested in an office rental business and a private equity fund.
The Vision Fund is being run by Rajeev Misra from a London office. Misra formerly ran Deutsche Bank’s credit derivatives business.