SoftBank Founder Masayoshi Son Pursues $100 Billion for AI Chip Venture
SoftBank Group founder **Masayoshi Son** is reportedly seeking to raise up to $100 billion for a new AI chip venture, codenamed **Izanagi**, as per a Bloomberg report. The project is aimed at competing with industry leader **Nvidia Corporation** in the AI chip space, enhancing the production of crucial semiconductors for AI applications.
Representatives from **SoftBank** and **Arm**, the Japanese conglomerate holding a majority stake in the British chip designer, have declined to comment on the matter. Son is making a significant move into the AI sector as SoftBank trims its investments in startups.
Son’s vision involves establishing a company that complements **Arm Holdings’** chip design unit to form a robust AI chip powerhouse. SoftBank’s potential $100 billion funding structure for Izanagi includes $30 billion from the company itself, with an additional $70 billion possibly sourced from Middle Eastern institutions, sources revealed.
If successful, the Izanagi project could mark one of the largest investments in the AI sector, surpassing **Microsoft’s** recent $10 billion investment in **OpenAI**. Son christened the venture Izanagi after the Japanese god of creation and life, incorporating the initials for **artificial general intelligence (AGI)**. Specifics about funding and project direction remain undetermined, leaving room for further evolution.
SoftBank, renowned for its hefty technology investments, has returned to profitability for the first time in five quarters. Son is now shifting focus towards **Arm**, sighting an opportunity to forge a prominent presence in the AI market. Collaborating with **Arm CEO Rene Haas**, who also sits on the SoftBank board, is expected to play a pivotal role in the venture.
Despite strategic shifts, Son remains steadfast in his belief that **AGI** will materialize within the next decade. In October, he urged **Japanese enterprise clients** to embrace AI or risk lagging behind. The billionaire is sanguine that **AGI** will be a reality by **2034**.
Analyst comment
Positive news.
As an analyst, the market is likely to respond positively to SoftBank’s plans to raise up to $100 billion for its new AI chip venture, Izanagi. The project aims to compete with Nvidia in the AI chip space and contribute to the production of essential semiconductors for AI applications. If successful, this could become one of the largest investments in the AI sector. SoftBank’s return to profitability and the collaboration with Arm CEO Rene Haas is expected to further support the project’s success.
