SoftBank Group CEO Masayoshi Son is reportedly seeking to raise up to $100 billion for a new chip venture that will directly compete with Nvidia Corp. The project, known as Izanagi, aims to develop and supply semiconductors that are crucial for artificial intelligence (AI) applications.
While SoftBank plans to invest $30 billion into the venture, an additional $70 billion may come from Middle Eastern institutions, according to sources familiar with the matter. This substantial investment highlights SoftBank’s ambitions to establish itself as a major player in the semiconductor industry, directly challenging Nvidia’s dominance in the AI chip market.
By venturing into chip manufacturing, SoftBank aims to strengthen its position in the AI sector. SoftBank already holds a 90% stake in Arm, a British chip designer that is becoming increasingly indispensable for AI applications. Industry experts have hailed Arm as “the core of the core” of SoftBank’s group of companies.
Arm, alongside Nvidia, has witnessed strong demand for its central processors used in data centers for AI work. The collaboration between the two companies has proved fruitful, with Arm’s processors effectively complementing Nvidia’s chips in AI applications.
SoftBank’s strategic move comes after a period of defensive maneuvers necessitated by the pandemic’s impact on global markets. After suffering from plummeting valuations due to investor aversion to risk, SoftBank returned to profitability earlier this month, buoyed by an improving performance of its portfolio companies.
With the launch of Izanagi, SoftBank aims to solidify its position as a leading player in the AI chip market and reshape the landscape of the semiconductor industry. This move holds enormous potential for technological advancements in AI and promises to usher in an era of fierce competition between SoftBank and Nvidia.
SoftBank CEO seeks to raise $100 billion for chip venture
SoftBank Group CEO Masayoshi Son is planning to raise up to $100 billion for a new chip venture called Izanagi, which will directly compete with Nvidia Corp. The goal of the project is to develop and supply semiconductors that are crucial for artificial intelligence (AI) applications.
SoftBank’s investment and Middle Eastern institution contributions
SoftBank intends to invest $30 billion into the venture, with an additional $70 billion potentially coming from Middle Eastern institutions. This significant investment reflects SoftBank’s ambition to establish itself as a major player in the semiconductor industry and directly challenge Nvidia’s dominance in the AI chip market.
SoftBank’s focus on the AI sector
By entering the chip manufacturing industry, SoftBank aims to strengthen its position in the AI sector. SoftBank already owns a 90% stake in Arm, a British chip designer that has become essential for AI applications. Arm is considered the foundation of SoftBank’s group of companies.
Collaboration between Arm and Nvidia
Both Arm and Nvidia have experienced high demand for their central processors used in data centers for AI work. The collaboration between the two companies has been successful, with Arm’s processors effectively complementing Nvidia’s chips in AI applications.
SoftBank’s strategic move after pandemic impact
SoftBank’s move into the chip market follows a period of defensive maneuvers due to the impact of the pandemic on global markets. After facing decreasing valuations, SoftBank returned to profitability recently, supported by the improved performance of its portfolio companies.
SoftBank’s goal to reshape the semiconductor industry
With the launch of Izanagi, SoftBank aims to solidify its position as a leading player in the AI chip market and reshape the semiconductor industry. This move has the potential to drive technological advancements in AI and lead to intense competition between SoftBank and Nvidia.
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The source of the article is from the blog regiozottegem.be