•Masayoshi Son, SoftBank’s founder, plans a $100 billion chip venture dubbed Izanagi to rival Nvidia in the AI semiconductor market.
•SoftBank intends to invest $30 billion internally and seeks an additional $70 billion from Middle Eastern institutions for the project.
•The venture aims to bolster SoftBank’s presence in AI chip technology, leveraging its stake in Arm Holdings and meeting rising demand for AI processors.
Masayoshi Son, the founder of SoftBank Group Corp., is seeking to raise up to $100 billion to create a chip venture aimed at competing with Nvidia Corp. and supplying semiconductors essential for artificial intelligence (AI). This new venture, code-named Izanagi after the Japanese god of creation, aims to position SoftBank as a powerhouse in the AI chip industry.SoftBank plans to invest $30 billion of its own funds into the project, with potential additional funding of $70 billion from Middle Eastern institutions.
With a significant stake in Arm Holdings Plc, SoftBank aims to complement its chip design unit and solidify its position in the AI chip market.Arm Holdings, referred to as “the core of the core” of SoftBank’s group of companies, has witnessed strong demand for its central processors, particularly to complement Nvidia‘s chips for AI work in data centers.This strategic move by SoftBank aligns with its revised investment strategy, emphasizing defensive positions after pandemic-related uncertainties dampened investor risk appetite. SoftBank’s return to profitability after five quarters, by an upturn in its portfolio companies, underscores the company’s resilience and strategic foresight.