SoftBank shares fell sharply on Wednesday, dropping as much as 10%, after the Japanese conglomerate sold its $5.8 billion stake in Nvidia — a move that underscores its massive funding drive to expand investments in artificial intelligence.

The sale comes as SoftBank, led by founder and CEO Masayoshi Son, ramps up its “all-in” commitment to AI, including a $22.5 billion follow-on investment in ChatGPT creator OpenAI, a $6.5 billion acquisition of US chipmaker Ampere, and a $5.4 billion deal to purchase the robotics business of Switzerland’s ABB Group.

The company said it is reallocating capital to strengthen its AI ecosystem and support “strategic opportunities” that align with its long-term vision.

SoftBank’s cash reserves stood at ¥4.2 trillion (€27.8 billion) at the end of September, but its near-term funding needs remain significant. To bolster liquidity, the company has issued bonds in three currencies worth more than $8 billion since April and arranged loans totalling around $15 billion for its upcoming acquisitions. It also sold $9.2 billion in T-Mobile US shares between June and September.

SoftBank CFO Yoshimitsu Goto described the company’s financial position as “solid but active,” noting that its loan-to-value ratio stood at 16.5% at the end of September. “Our liquidity gives us flexibility to act quickly and decisively where opportunities arise,” Goto said.

Meanwhile, Navneet Govil, CFO of SoftBank’s Vision Fund, said the company’s confidence in its AI strategy remains strong. “What’s different between the dotcom boom and today is that AI companies are generating meaningful revenues,” he said. “There’s a lot of talk about capex spend, but it’s actually driven by demand.”

Despite Tuesday’s sharp decline, SoftBank shares recovered some ground to close down 3.46% on the day. Nvidia and Arm — the UK chipmaker controlled by SoftBank — also fell 3% overnight.

The share sale marks another step in SoftBank’s broader effort to consolidate its resources and position itself at the forefront of the global race to commercialise artificial intelligence.