SoftBank Group Corporation is exploring the possibility of creating a $100 billion chip venture that would supply AI-enabling semiconductors. The stock of the Tokyo-based tech investor rose by as much as 3.2 percent upon the announcement.
Founder Masayoshi Son is reportedly seeking funding for the venture, codenamed Izanagi, which aims to compete with Nvidia Corp. The project would involve building an AI chip business that complements SoftBank’s majority stake in chip design company Arm Holdings Plc.
In one potential scenario, SoftBank would provide $30 billion of the funding, with another $70 billion coming from Middle Eastern institutions. If successful, the chip project would account for roughly a fifth of the global semiconductor market, dwarfing Microsoft Corp.’s investment in OpenAI.
Named after the Japanese god of creation and life, the Izanagi project reflects Son’s enthusiasm for the future of artificial general intelligence. He believes that a world filled with intelligent machines would lead to greater happiness.
SoftBank’s stock has experienced a significant boost in recent trading days, thanks in part to the success of Arm. Shares in the company have risen by approximately 30%, while Arm’s shares have surged by over 80%.
Son sees the AI chip venture as an opportunity to rival the “Magnificent Seven” stocks. SoftBank currently holds ¥6.2 trillion ($41 billion) in cash and cash equivalents, thanks to a rebound in global equity markets and windfall gains from T-Mobile US Inc. shares.
This potential venture marks SoftBank’s continued expansion into the technology sector, demonstrating its confidence in the future growth of AI and semiconductors.
Frequently Asked Questions:
Q: What is SoftBank exploring in relation to chip venture?
A: SoftBank Group Corporation is exploring the possibility of creating a $100 billion chip venture that would supply AI-enabling semiconductors.
Q: How did SoftBank’s stock perform after the announcement?
A: The stock of SoftBank rose by as much as 3.2 percent upon the announcement.
Q: Who is the founder of SoftBank?
A: The founder of SoftBank is Masayoshi Son.
Q: What is the codename for the chip venture?
A: The codename for the chip venture is Izanagi.
Q: What is the aim of the Izanagi project?
A: The aim of the Izanagi project is to compete with Nvidia Corp by building an AI chip business that complements SoftBank’s majority stake in chip design company Arm Holdings Plc.
Q: How much funding is SoftBank seeking for the venture?
A: SoftBank is seeking $100 billion in funding for the venture, with $30 billion from SoftBank and $70 billion from Middle Eastern institutions.
Q: How much of the global semiconductor market would the chip project account for if successful?
A: If successful, the chip project would account for roughly a fifth of the global semiconductor market.
Q: What is the significance of the name Izanagi?
A: The name Izanagi is named after the Japanese god of creation and life, representing Masayoshi Son’s enthusiasm for the future of artificial general intelligence.
Q: How has SoftBank’s stock performed recently?
A: SoftBank’s stock has experienced a significant boost, rising by approximately 30% in recent trading days, thanks in part to the success of Arm.
Q: How does SoftBank view the AI chip venture?
A: SoftBank sees the AI chip venture as an opportunity to rival the “Magnificent Seven” stocks.
Q: How much cash and cash equivalents does SoftBank currently hold?
A: SoftBank currently holds ¥6.2 trillion ($41 billion) in cash and cash equivalents.
Key Terms:
– SoftBank Group Corporation: A Tokyo-based tech investor and conglomerate.
– Chip Venture: Refers to SoftBank’s exploration of creating a $100 billion chip venture to supply AI-enabling semiconductors.
– AI: Artificial Intelligence.
– Semiconductors: Semiconductor chips used in electronic devices.
– Arm Holdings Plc: A chip design company in which SoftBank holds a majority stake.
– Nvidia Corp: A multinational technology company known for its graphics processing units (GPUs).
– Magnificent Seven stocks: Refers to a group of technology stocks that have performed exceptionally well.
– Cash and Cash Equivalents: Refers to highly liquid assets such as cash on hand and short-term investments.
– Artificial General Intelligence: Refers to highly autonomous systems that outperform humans in most economically valuable work.
Suggested Related Links:
– SoftBank Group Corporation Official Website
– Arm Holdings Plc Official Website
– Nvidia Corp Official Website
The source of the article is from the blog kewauneecomet.com