SoftBank Group has sold $7.2 billion worth of Alibaba shares in 2023, the Financial Times reported on April 13 citing regulatory filings.

After the latest round of sales, the Japanese conglomerate's stake in Alibaba fell to 3.8%, down sharply from 24% last summer.

SoftBank told the FT the Alibaba transactions reflected its shift to “a defensive mode” to address a more uncertain business environment, and added the company would provide details of the deal in its quarterly results announcement in May.

The move by SoftBank comes as the company plans a major listing of UK chip designer Arm.

SoftBank reported a $5.6 billion loss for the quarter ending December, primarily attributed to a significant downturn in its Vision Fund investment arm. The ongoing weakness in the tech market is fueling these losses, as valuations of private startups have experienced substantial cuts and stock prices of public companies have seen sharp declines. 

Masayoshi Son, founder and CEO of SoftBank, invested $20 million in Alibaba in 2000, helping the e-commerce startup grow into one of the world's largest technology companies.

In March, Alibaba said it would split into six business groups, with each unit getting its own funding and the possibility of going public. Alibaba said in a statement that the move "aims to unlock shareholder value and promote market competitiveness."

Separately, the sale by SoftBank comes as the it plans a major IPO for Arm. The SoftBank-owned semiconductor design company is expected to file confidentially for an initial public offering at the end of April, depending on market conditions.