SoftBank's $100 Billion Vision to Dominate AI Chips

Masayoshi Son SoftBank / aidigitalx — Masayoshi Son SoftBank

Masayoshi Son plans to launch a $100 billion chip venture to compete with Nvidia in AI.

Son aims to raise up to $100 billion for a new chip company called Izanagi, named after the Japanese god of creation.

Of this, SoftBank may invest $30 billion of its own funds. An additional $70 billion may come from Middle Eastern institutions.

The goal is to establish a company that can complement SoftBank’s existing chip design unit Arm Holdings and position SoftBank as a leader in AI chips.

This comes as SoftBank has shifted to a more defensive investment strategy after losses during the pandemic. However, SoftBank recently returned to profit as its portfolio rebounded.

Son sees an opportunity to compete with Nvidia in supplying chips for AI and data centers. Arm is already seen as key to AI chip development.

The move aligns with Son’s bold vision and appetite for large strategic bets. It signals his ambition for SoftBank and Arm to be at the forefront of the AI chip industry.

This is an ambitious play by Son to make SoftBank a power player in semiconductors for AI through a massive new chip venture centered around Arm. It remains to be seen if he can execute on this vision.