SoftBank Group CEO Seeks $100 Billion for AI Chip Venture
SoftBank Group CEO Masayoshi Son is planning to secure a massive $100 billion for a new chip venture, aiming to challenge the dominance of Nvidia Corp in the market, according to Bloomberg News. The project, known as Izanagi, will focus on producing semiconductors that are crucial for artificial intelligence (AI) applications.
The report suggests that SoftBank will invest $30 billion into the venture, with the remaining $70 billion potentially coming from Middle Eastern institutions. SoftBank has not yet responded to requests for comment.
SoftBank already holds a significant 90% stake in British chip designer Arm, making it a major player in the industry. SoftBank CFO Yoshimitsu Goto has previously emphasized the importance of Arm in the field of AI, describing it as the core of the core of SoftBank’s group of companies.
Arm executives have also highlighted the growing demand for their central processors, which complement Nvidia’s chips in powering AI work in data centers. The partnership between Arm and Nvidia has become increasingly relevant as AI continues to advance.
SoftBank’s move to raise funds for the chip venture comes after a period of defensive strategies following the economic downturn caused by the pandemic. The company recently returned to profit for the first time in five quarters, thanks to the recovery of its portfolio companies.
SoftBank is renowned for its tech investments and has taken ambitious positions in numerous startups. However, the company faced challenges when the pandemic resulted in plummeting valuations and reduced investor risk appetite due to higher interest rates.
As SoftBank seeks to solidify its position in the AI chip market, the success of the Izanagi project could be critical. By securing significant funding, the company aims to rival industry leader Nvidia and play a pivotal role in the future of AI technology.
In conclusion, SoftBank Group CEO Masayoshi Son is reportedly seeking $100 billion to fund a chip venture that will directly compete with Nvidia. The project, called Izanagi, aims to supply semiconductors essential for AI applications. With a majority stake in Arm and potential investments from Middle Eastern institutions, SoftBank is poised to make a significant impact in the AI chip market.
