SoftBank Group’s Chief Executive Officer, Masayoshi Son, is reportedly in talks to mobilise a staggering $100 billion for a new chip venture, aiming to pose a significant challenge to Nvidia Corp, according to Bloomberg News sources.
Dubbed “Izanagi,” the project is set to focus on the production of semiconductors crucial for powering artificial intelligence (AI) technologies, Bloomberg’s report unveiled.
Sources suggest that SoftBank plans to inject $30 billion into the venture, with the possibility of an additional $70 billion investment from various Middle Eastern institutions, as per the same report.
As of the time of reporting, SoftBank has not responded to Reuters’ request for comment during non-business hours.
This ambitious move comes as SoftBank already holds a dominant 90 percent stake in the British chip designer, Arm, a fact confirmed by the London Stock Exchange Group.
SoftBank’s Chief Financial Officer, Yoshimitsu Goto, underscored Arm’s growing significance in the realm of AI, labelling the chip designer as “the core of the core” within SoftBank’s portfolio of companies. Goto’s remarks echo the sentiment expressed earlier by Arm executives, who highlighted the surging demand for their central processors, particularly in conjunction with Nvidia’s chips for AI applications in data centres.
SoftBank, renowned for its bold investments in the tech sector, is now making another grand move, albeit after adopting a more cautious stance in response to the pandemic-induced market volatility. The company’s recent return to profitability, after five consecutive quarters of decline, underscores its resilience in navigating challenging economic landscapes.
The Izanagi project represents a significant pivot for SoftBank, signalling its determination to assert dominance in the semiconductor space and compete head-on with industry giants like Nvidia. With the AI market poised for exponential growth, SoftBank’s strategic manoeuvre could potentially reshape the landscape of the semiconductor industry in the coming years.
