SoftBank Group's Masayoshi Son is reportedly seeking to raise $100 billion for a new venture, code-named Izanagi, to enter the competitive AI chip market, challenging players like Nvidia. The new venture would collaborate with Arm, the chip design company spun out as a public company by SoftBank. To fund this venture, SoftBank plans to tap Middle East-based institutional investors for about $70 billion, with the remaining $30 billion to be provided by SoftBank itself.
This move aligns with SoftBank's shift towards AI, following its historical focus on high returns from its investment in Alibaba. With SoftBank gradually selling off parts of its stake in Alibaba to reinvest in AI, the company is making offensive and defensive strides into the AI revolution, particularly following a $32 billion loss in its Vision Fund.
The AI chip project would leverage Arm's position as a key player in the chip design industry, with notable customers including Nvidia, Apple, Google, Microsoft, and Amazon. This endeavor also follows a solid recovery for SoftBank, evidenced by the company's first quarterly profit in nearly three years, driven by gains in its Vision Fund.
At the same time, OpenAI's chief, Sam Altman, is reportedly also in talks to raise an eye-watering $5 to $7 trillion for a new AI chip project, highlighting the immense investment and focus on AI chip development in the industry.
The specifics of SoftBank's new project remain undisclosed, including details about the core technology and timelines. However, the move signifies a strategic and substantial commitment to enter and compete in the rapidly growing AI chip market.
