On the big stage of the business world, sometimes a single decision can change a fate. Japan's richest man, Masayoshi Son, recently missed astronomical profits because of a "wrong" decision, but was also taught a lesson by a Chinese bigwig. This story is not only thought-provoking, but also reveals the fast-changing nature of the tech industry.
In 2019, Son made a seemingly wise decision: liquidating a 4.9% stake in Nvidia and reaping a $3.3 billion return on investment. At the time, the deal was seen as a successful investment. However, just a few years later, this decision became Son's greatest regret.
With the explosive development of artificial intelligence technology, NVIDIA's stock price has soared into the sky like a rocket. As of June 2024, Nvidia's market capitalization has exceeded $3 trillion, making it the third-largest publicly traded company after Microsoft and Apple. Had Mr. Son not liquidated his positions, the shares would now be worth more than $150 billion, or 1.09 trillion yuan.
This stark contrast begs the question: what has allowed Nvidia to achieve such phenomenal growth in just a few years? The answer lies in its centrality in the field of artificial intelligence.
Nvidia started out as a company focused on gaming graphics cards, but it was keenly aware of the potential of GPUs in AI computing. With the development of deep learning technology, the parallel computing power of GPUs has become the key to AI training. Nvidia seized the opportunity to expand its GPU technology into the AI field, becoming a leader in AI computing in one fell swoop.
In 2022, OpenAI released ChatGPT, triggering a new round of AI craze. As the core supplier of AI underlying computing, NVIDIA has become the biggest beneficiary of this revolution. Tech companies are rushing to buy Nvidia's GPUs to train their AI models, driving Nvidia's stock price and market capitalization to new highs.
Meanwhile, Masayoshi Son's SoftBank Group has had a rough time. A series of investment blunders, including a huge investment in WeWork, left SoftBank in financial trouble. To make up for the losses, Son had to sell some high-quality assets, including a stake in Nvidia.
However, fate always likes to joke. Just when Son was regretting missing out on Nvidia, Arm, another company he had acquired, gave him a surprise. With the rise of the AI boom, Arm's stock price has also risen, and it is now worth more than $160 billion, with SoftBank holding 88.7% of the shares.
This dramatic turn not only allowed Son to avoid missing the AI feast altogether, but also provided him with an opportunity to re-arrange. Recently, Son publicly stated that he is fully committed to artificial intelligence, and plans to invest 10 trillion yen in AI-related businesses.
However, the competition in the AI space is far from over. Giants such as Microsoft and OpenAI are developing their own AI chips, and AMD and Intel are also actively catching up. Although NVIDIA's leading position is unshakable for the time being, the competition will be more fierce in the future.
The lesson of this story is that in today's rapid development of technology, entrepreneurs and investors need to have more keen insight and stronger strategic determination. Son's experience has taught us that sometimes persistence is more important than giving up, and that a long-term vision can often bring unexpected rewards.
At the same time, we also need to recognize that the development of the technology industry is a dynamic process. Today's leaders may be overtaken tomorrow, and yesterday's mistakes can be a foreshadowing for future success. For entrepreneurs, it's important to keep learning, keep an open mind, and be ready to take on new challenges and opportunities.
Finally, this story also reminds us that when it comes to investment and business decisions, we should not be fooled by short-term gains. Sometimes, seemingly wise decisions can lead to long-term regrets, and those that were considered wrong at the time may end up with unexpected rewards.
Overall, Son's story is not only a thought-provoking business case, but also a cautionary tale to the tech industry as a whole. In this rapidly changing era, only by maintaining keen insight and continuous learning and adaptation can we remain invincible in the fierce competition. And for us ordinary people, this story also reminds us to look at the world with a more open and long-term perspective, because opportunities are often hidden in the seemingly frustration.