SoftBank, led by Masayoshi Son, has made headlines once again with its plans to launch a new AI chip venture that aims to raise a staggering $100 billion. The venture, codenamed Izanagi, is expected to receive $30 billion from SoftBank and $70 billion from Middle Eastern institutions. The news sent SoftBank’s share price up by nearly 5%, reflecting the excitement and anticipation surrounding this ambitious endeavor.
This bold move by SoftBank comes after the company divested its $3.6 billion stake in Nvidia back in 2019. It seems that SoftBank is now looking to create a rival in the chip sector, demonstrating its pivot from funding startups to focusing on semiconductors. With Arm, in which SoftBank holds a 90% stake, being a crucial player in chip designs, any potential alliance between Izanagi and Arm could raise antitrust concerns.
SoftBank’s foray into the chip sector is not unique, as OpenAI CEO Sam Altman is also venturing into the AI-chip space with a multi-trillion-dollar project. Both SoftBank and Altman are seeking funding from Middle Eastern investors, which could trigger national-security reviews and antitrust scrutiny.
Meanwhile, the Biden administration is taking steps to stimulate semiconductor manufacturing in the United States. Under the 2022 CHIPS Act, substantial subsidies are being awarded to companies, such as Microchip Technology and BAE Systems, to bolster domestic production capabilities. GlobalFoundries, a major chipmaking contractor, has signed preliminary terms to receive $1.5 billion for expanding and modernizing its US operations. Additionally, Intel may receive $10 billion to support the onshoring of its manufacturing.
The chip sector is undeniably the center of attention, with Arm and Nvidia experiencing significant share price increases. SoftBank’s ambitious AI chip venture and the US government’s efforts to boost domestic semiconductor manufacturing further exemplify the growing importance and investment in this industry. The future of the chip sector seems promising, with huge sums of money and technological advancements on the horizon.
SoftBank’s Plans for New AI Chip Venture:
– SoftBank, led by Masayoshi Son, is launching a new AI chip venture called Izanagi, aiming to raise $100 billion.
– SoftBank will contribute $30 billion, while Middle Eastern institutions will provide $70 billion.
– The news caused SoftBank’s share price to increase by almost 5%, generating excitement and anticipation.
SoftBank’s Pivot to Semiconductors:
– SoftBank previously divested its $3.6 billion stake in Nvidia in 2019.
– The company is now shifting its focus from funding startups to the chip sector.
– With its 90% stake in Arm, SoftBank potentially partnering with Izanagi could raise antitrust concerns.
OpenAI CEO’s AI-Chip Venture:
– OpenAI CEO Sam Altman is also venturing into the AI-chip space with a multi-trillion-dollar project.
– Both SoftBank and Altman are seeking funding from Middle Eastern investors.
– This may trigger national-security reviews and antitrust scrutiny.
Biden Administration’s Efforts to Boost US Semiconductor Manufacturing:
– The Biden administration is taking steps to stimulate semiconductor manufacturing in the US.
– The 2022 CHIPS Act provides substantial subsidies to companies like Microchip Technology and BAE Systems.
– GlobalFoundries has signed preliminary terms to receive $1.5 billion for expanding its US operations.
– Intel may receive $10 billion to support bringing its manufacturing back to the US.
Growing Importance and Investment in the Chip Sector:
– The chip sector is attracting significant attention, with Arm and Nvidia experiencing share price increases.
– SoftBank’s AI chip venture and the US government’s efforts to boost domestic manufacturing highlight the industry’s growing importance.
– This industry is attracting large sums of money and driving technological advancements.
Definitions:
– AI chip venture: A business undertaking focused on the development and production of chips specifically designed for artificial intelligence applications.
– Semiconductors: Materials used to make electronic devices, including microchips used in computers and other electronic systems.
– Divested: The act of selling or disposing of an asset, in this case, SoftBank selling its stake in Nvidia.
– Pivot: In this context, it refers to SoftBank shifting its focus or strategy from one area (funding startups) to another (semiconductors).
– Antitrust: Pertaining to laws and regulations that promote fair competition and prevent monopolies or anti-competitive practices.
– National-security reviews: Evaluations conducted by government agencies to assess potential risks to national security posed by certain investments or collaborations.
– Subsidies: Financial support provided by the government to stimulate or bolster specific industries or activities.
– Onshoring: Bringing back manufacturing operations to the home country (in this case, the US) instead of outsourcing them to other countries.
Related Links:
– SoftBank
– Arm
– Nvidia
– OpenAI
– White House – Fact Sheet: Executive Action to Boost the U.S. Semiconductor Industry
The source of the article is from the blog crasel.tk