SoftBank in talks to get its hands on large volumes of Nvidia’s GPUs: Report

- SoftBank in talks to acquire large volumes of NVIDIA's GPUs - CEO Masayoshi Son aims to position SoftBank as a leader in AI technology - SoftBank exploring borrowing up to $10 billion for energy projects driven by AI demand - Potential plan to create a special-purpose company to purchase GPUs with borrowed funds - SoftBank could then lease GPUs to itself to keep debt off balance sheet - SoftBank backed companies include Tencent, T-Mobile, 10x Genomics ($TXG), and Automation Anywhere. - SoftBank (TYO:9984) is in discussions to secure a large volume of Nvidia’s GPUs for AI development - SoftBank may create a company to purchase the GPUs with borrowed funds and lease them back - SoftBank is also looking into energy investments to address power demands of AI data centers - SoftBank is focused on increasing exposure to AI infrastructure and sees Arm, a UK-based chip designer, as crucial for its AI ambitions

🚨 Reddit sentiment: mixed/negative - While there are positive remarks regarding high GPU demand and potential benefits for Nvidia, the historical context of SoftBank's investment failures and skepticism about their timing lead to a more cautious and generally negative sentiment among the comments. Summarized comments: - SoftBank's interest in acquiring large volumes of Nvidia's GPUs may indicate a belief in a sharp rise in GPU demand - SoftBank has a history of making large investments at market peaks, possibly suggesting their GPU move could be risky - Some comments suggest SoftBank's history of poor timing with investments, likening Masayoshi Son to Cathie Wood - The move may be positive for Nvidia but potentially bad for SoftBank - GPU demand is perceived as high across various sectors and regions, including Japan, the Middle East, Maldives, and China - There is skepticism around the notion that blockchain investments haven't worked out for SoftBank - There is a viewpoint that renting GPUs might be a tactic employed by companies to manage debt - General sentiment suggests the move isn't bearish, as some see $10B investment into GPUs as positive Stock tickers discussed: $NVDA