SoftBank Looks to Compete with Sam Altman and NVIDIA
Softbank looks to invest 100B into a new chip venture
Created on February 20|Last edited on February 20
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SoftBank's Masayoshi Son is venturing into an ambitious project to establish an AI chip enterprise capable of rivaling industry leader Nvidia. This initiative, known as Project Izanagi, aims to secure a staggering $100 billion in funding, with SoftBank proposing to contribute $30 billion and seeking an additional $70 billion from Middle Eastern investors. The project, named after the Japanese deity of creation and life, symbolizes Son's vision for pioneering developments in artificial general intelligence (AGI), a field he has been keenly investing in.
A Key Ally
SoftBank's relationship with Arm, a chip design company in which it holds a 90% stake, is central to Izanagi's strategy. While the specifics of how these two entities will collaborate remain under consideration, the partnership is expected to leverage Arm's expertise in chip design to advance the venture's goals. This comes after SoftBank's decision to take Arm public last year, a move that recently saw a significant increase in the company's valuation due to heightened interest in AI technologies.
Rocky Road
The initiative represents a strategic pivot for SoftBank and Masayoshi Son, who has previously faced scrutiny over the Vision Fund's investments in startups that failed to deliver on their promise, including high-profile cases like WeWork, Katerra, Wirecard, and Zymergen. These setbacks led to a reevaluation of SoftBank's investment strategy, particularly after the Vision Fund reported substantial losses.
IPO
Despite these challenges, SoftBank has seen a recent upturn in its fortunes, largely attributed to its ownership stake in Arm. The chip designer's public listing and subsequent valuation surge, fueled by speculation around AI, have bolstered SoftBank's financial position, marking a period of recovery and optimism for the conglomerate.
Following the Smart Money
Interestingly, Izanagi's ambitions are unfolding parallel to OpenAI CEO Sam Altman's own plans to secure funding for AI chip development, with discussions of potential collaboration between Altman and Son hinting at a larger, coordinated effort to advance semiconductor technology.
Despite past setbacks, Son's latest venture signals a renewed confidence in the potential of AI and semiconductor technology to drive transformative change.
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