Women's hearts raced when Williams' jersey burst during the World Cup victory over Tonga in September last year.
He gave it to Sky TV, and it was then handed it to Baseball New Zealand to auction.
The auction took place at the Sky City Grand Hotel in Auckland on Friday night and helped raise $55,000 for baseball.
Ryan Flynn, chief executive officer for Baseball New Zealand, said 130 people attended the auction, including Prime Minister John Key and London 2012 Olympic gold medal winner Lisa Carrington.
Williams said he was keen for the ripped shirt to be auctioned for charity.
The star centre left the All Blacks recently for a lucrative rugby contract with the Panasonic Wild Knights in Japan, and will make his return to league in the NRL next year, probably with the Sydney Roosters.
- By Melissa Hills of APNZ