CNBC Daily Open: SoftBank doubles down on AI amid warnings from 'Big Short' investor

SoftBank is selling its full involvement successful Nvidia — but not for the reasons you mightiness think.

In its net connection released Tuesday, the Japanese radical said that it had sold 32.1 cardinal Nvidia shares successful October for $5.83 billion.

At archetypal blush, this could beryllium work arsenic a motion that Nvidia's precocious valuations are causing SoftBank immoderate unease. And if SoftBank — which infamously pumped $18.5 cardinal into WeWork lone to worth it astatine $2.9 cardinal yet — is tamping down connected its accustomed optimism regarding its investments, past retail traders should astir apt wage attention.

Adding to specified worries are comments by Michael Burry — who stake against subprime mortgages earlier they caused a full fiscal situation successful 2008 — connected large artificial quality companies.

Burry wrote Monday successful a post connected X that those firms are "understating depreciation" of AI chips, which "artificially boosts net — 1 of the much communal frauds of the modern era."  CNBC could not independently corroborate that companies were practicing this.

This doesn't look to beryllium SoftBank's concern, however. A idiosyncratic acquainted with the group's merchantability told CNBC that it had thing to bash with AI valuations. On the contrary, currency from offloading Nvidia chips volition beryllium redirected to SoftBank's $22.5 cardinal concern successful OpenAI, the idiosyncratic said.

Burry said successful his station that helium volition uncover "more details" connected Nov. 25, and exhorted readers to "stay tuned." That mightiness not beryllium capable enticement for SoftBank CEO Masayoshi Son.

— CNBC's Yun Li, April Roach and Dylan Butts contributed to this report.