- SoftBank's shares climb 3.2% on news of a $100 billion AI chip venture
- CEO Masayoshi Son aims to challenge Nvidia with a new AI chip project.
- The venture could reshape the global semiconductor market.
February 19, 2024: SoftBank Group Corporation witnessed a significant rise in its shares, peaking at a 3.2% increase. This surge came on the heels of Bloomberg News’ report detailing plans by Masayoshi Son, SoftBank’s visionary CEO, to launch an ambitious journey into the artificial intelligence (AI) chip industry.
At 66 years old, the billionaire is not slowing down; instead, he is gearing up to challenge the dominance of Nvidia Corp with a groundbreaking $100 billion chip venture.
Dubbed “Izanagi,” after the Japanese deity of creation, this venture aims to not only enter but also to impact the AI chip market significantly.
This initiative seeks to complement the capabilities of Arm Holdings Plc, a leading chip design company and a jewel in SoftBank’s vast investment portfolio.
Son’s strategy includes a hefty personal investment from SoftBank, amounting to $30 billion. At the same time, the remaining funds are anticipated to come from Middle Eastern institutions, reflecting the global interest and potential backing for this monumental project.
The implications of Son’s success in this endeavor are vast.
It would position SoftBank as a formidable competitor against tech giants like Microsoft Corp. and their investments in AI and secure about a fifth of the global semiconductor market.
This project mirrors Son’s longstanding belief in a future where machines surpass human intelligence, contributing to a happier world.
Despite previous setbacks in various startup investments, SoftBank has rebounded, particularly with the success of Arm Holdings, which saw an over 80% surge in its shares.
This resurgence has bolstered SoftBank’s financial standing, with the company boasting ¥6.2 trillion ($41 billion) in cash and equivalents by the end of December, thanks to strategic investments and market recoveries.
Masayoshi Son’s vision extends beyond financial gains; it’s about pioneering a future where AI can lead to advancements and efficiencies previously unimagined.
As SoftBank navigates through the complexities of the global tech landscape, its venture into the AI chip market under Son’s leadership marks a significant chapter in the company’s ambitious journey toward innovation and dominance in the technology sector.
