Thiel exits Nvidia: Tech guru reduces AI exposure

The billionaire's fund closes a $100 million position amid uncertainty over the future of artificial intelligence.

Peter Thiel, the renowned entrepreneur and investor, has decided to exit his stake in Nvidia Corp., the world’s leading producer of AI chips. According to the 13F filing - a quarterly report required by the SEC disclosing hedge fund holdings - Thiel Macro LLC sold all 537,742 shares it held, for an estimated value of around $100 million.

The news comes just days after a similar move by SoftBank Group Corp., which in October sold its Nvidia shares for $5.83 billion. Both Thiel’s and SoftBank’s transactions reflect the concerns of some institutional investors about the potential bubble in AI investments. Meanwhile, Nvidia shares have seen a modest increase of around 3% since the end of September.

An analysis of 13F filings from 909 hedge funds shows a divided landscape: 161 funds increased their positions in Nvidia, while 160 reduced theirs in the same quarter. Hyperscalers, however, continue to raise capital through new jumbo bond issuances, without yet demonstrating the ability to generate sustainable profits.

Thiel Macro remains committed to the tech sector: its main bets are on Apple Inc., Microsoft Corp., and a reduced stake in Tesla Inc. On the venture capital front, Thiel continues to support U.S. competitors to Nvidia, such as Substrate, as well as innovative AI startups including Mercor and Cognition AI. Currently, Thiel has not provided any official comment regarding the sale.

Andrea Pelucchi