SoftBank's Masayoshi Son Seeks $100 Billion for New AI Chip Venture

SoftBank Group’s Masayoshi Son has been making no secret of his intent to double down on the red-hot artificial intelligence industry. Now, he is fundraising for his next move in that strategy. According to a report in Bloomberg, the SoftBank founder is seeking $100 billion to build a new venture that would compete with the likes of Nvidia in the area of AI chips.

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Code-Named Izanagi: A New Venture in AI Chips

The new venture, code-named Izanagi, would collaborate with Arm, the chip design company that SoftBank spun out as a public company last year. It still owns about 90% of Arm’s stock as of this month. This move is seen as an attempt by SoftBank to tap into the growing demand for AI chips and establish itself as a major player in the industry.

A New Era of Competition in AI Chips

Nvidia currently dominates the AI chip market with its GPU chips. However, with the need for AI processors projected only to grow — and with a lot more work to be done to improve efficiency and cost — there’s a clear opening for others to compete with alternatives. This new era of competition is set to bring about significant changes in the industry, and SoftBank’s move into this space could potentially disrupt the market.

OpenAI’s Ambitions in AI Chips

OpenAI chief Sam Altman is reportedly also in talks with investors in the United Arab Emirates to raise an eye-watering $5 trillion to $7 trillion for a new AI chip project. This move highlights the growing interest in AI chips and the significant investments being made by major players in the industry.

A Separate Venture: Izanagi and OpenAI’s AI Chip Ambitions

The details of SoftBank’s new project have not been disclosed, including which companies would build the core technology and timelines. However, it appears that the Izanagi project is separate from Altman’s AI chip ambitions, according to the Bloomberg report.

A Shift in Focus for SoftBank

SoftBank has historically made a huge part of its strongest returns from its early investment and stake in Chinese e-commerce titan Alibaba, which has yielded it more than $70 billion over the years. However, since March 2023 — when SoftBank chief financial officer Yoshimitsu Goto said that the company was ‘getting ready to go on the offensive with the AI revolution on the horizon’ — it’s been gradually selling off parts of its stake in Alibaba to focus on new opportunities in the AI space.

A New Era for SoftBank

SoftBank’s move into the AI chip market marks a significant shift in the company’s strategy and highlights its commitment to investing in emerging technologies. With a growing demand for AI chips and increasing competition in the industry, it will be interesting to see how SoftBank’s new venture, Izanagi, will fare.

What This Means for the Industry

The entry of major players like SoftBank and OpenAI into the AI chip market is set to bring about significant changes in the industry. With more investment and innovation in this space, we can expect to see improved efficiency and cost-effectiveness in AI chips, which could have far-reaching implications for various industries that rely on AI.

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