SoftBank Group’s founder, Masayoshi Son, is embarking on a fundraising mission to secure $100 billion for a new venture in the field of artificial intelligence (AI) chips. Dubbed as Izanagi, the project aims to compete with dominant players like Nvidia. In collaboration with Arm, the chip design company that SoftBank spun off as a public company in the previous year, Izanagi is set to leverage Middle East-based institutional investors for $70 billion, with SoftBank contributing the remaining $30 billion.
As the AI chip market is projected to expand, there is an increasing demand for alternative solutions that improve efficiency and cost-effectiveness. Nvidia currently holds a significant market share with its GPU chips, but other players have the opportunity to enter the market with similar GPU options or even entirely different processing approaches.
Notably, OpenAI’s CEO, Sam Altman, is also reportedly engaging with investors in the UAE to raise a staggering $5 trillion to $7 trillion for a separate AI chip project. OpenAI has been at the forefront of generative AI development, making it one of the largest customers in the industry for AI chips.
SoftBank’s move into AI aligns with its strategic focus on this emerging technology. Historically, the company’s major returns came from its investment in Chinese e-commerce giant Alibaba. However, SoftBank has been gradually divesting parts of its Alibaba stake since March 2023 to reinvest the funds into AI initiatives.
While SoftBank experienced a significant loss in its Vision Fund, the company’s remaining stake in Arm has contributed to its recovery. Returns for the Vision Fund have rebounded, and Arm’s shares have surged due to the growing demand for AI chips. SoftBank’s CFO, Yoshimitus Goto, stated that Arm would soon become indispensable to AI technology.
Although details about SoftBank’s new project, including core technology partners and timelines, remain undisclosed, the company’s strategic foray into AI reflects its determination to make a substantial impact in this transformative field. The fundraising efforts highlight Masayoshi Son’s commitment to doubling down on the AI industry and consolidating SoftBank’s position as a significant player in the domain of AI chips.
SoftBank Group’s founder, Masayoshi Son, is raising $100 billion for a new venture called Izanagi focused on artificial intelligence (AI) chips. The project aims to compete with Nvidia, a dominant player in the market. SoftBank will collaborate with Arm, the chip design company it spun off last year, to raise $70 billion from Middle East-based institutional investors, with SoftBank contributing the remaining $30 billion.
The expanding AI chip market is driving demand for alternative solutions that improve efficiency and cost-effectiveness. Nvidia currently holds a significant market share with its GPU chips, but other players have the opportunity to enter the market with similar or different processing approaches.
Meanwhile, CEO of OpenAI, Sam Altman, is also engaging UAE investors to raise a massive $5 trillion to $7 trillion for a separate AI chip project. OpenAI is a prominent customer in the industry for AI chips.
SoftBank’s move into AI aligns with its strategic focus on emerging technologies. The company has divested parts of its stake in Alibaba to reinvest funds into AI initiatives. While SoftBank experienced losses in its Vision Fund, its remaining stake in Arm has contributed to its recovery. Arm’s shares have surged due to the growing demand for AI chips, and it is expected to become indispensable to AI technology.
Details about SoftBank’s Izanagi project, including technology partners and timelines, have not been disclosed. However, the fundraising efforts demonstrate Masayoshi Son’s commitment to the AI industry and to establishing SoftBank as a significant player in AI chip development.
Definitions:
– AI chips: Computer chips specifically designed for artificial intelligence tasks.
– GPU chips: Graphics processing unit chips, commonly used in AI applications for parallel processing.
Related links:
– Arm
– Nvidia
– OpenAI
– SoftBank Group
The source of the article is from the blog maestropasta.cz