• SoftBank’s Son aims $100B for AI chips, Izanagi, vs Nvidia.
• $30B SoftBank, potential $70B Middle East investment.
• Arm pivotal for AI, driving SoftBank’s post-pandemic strategy.

SoftBank Group’s Chief Executive Officer, Masayoshi Son, is reportedly aiming to secure up to $100 billion for a cutting-edge chip venture that will compete with Nvidia Corp, according to sources familiar with the matter. The ambitious project, codenamed Izanagi, focuses on supplying semiconductors crucial for artificial intelligence (AI) applications.

The plan involves SoftBank injecting $30 billion into the venture, with an additional $70 billion potentially coming from Middle Eastern institutions, marking a substantial financial commitment to the endeavor. While SoftBank has not officially commented on the reports, sources indicate that the company is actively seeking substantial backing for its venture.

Currently holding a significant 90% stake in British chip designer Arm, SoftBank views Arm as indispensable to the future of AI. SoftBank CFO Yoshimitsu Goto recently emphasized the strategic importance of Arm, referring to it as “the core of the core” within SoftBank’s group of companies.

Arm executives have also highlighted the increasing demand for their central processors, particularly in conjunction with Nvidia’s chips, for AI applications in data centers. This move aligns with SoftBank’s historical reputation for making high-conviction investments in technology, although it had temporarily adopted a more defensive strategy in response to market uncertainties during the pandemic.

SoftBank’s recent return to profitability after five consecutive quarters of losses has positioned the Japanese tech investment firm to pursue bold initiatives. The company’s renewed success is attributed to the positive performance of its portfolio companies, providing the financial stability needed for ventures such as the Izanagi chip project.

If successful, SoftBank’s ambitious plan to raise $100 billion for its AI chip venture could significantly impact the semiconductor industry and position the company as a formidable competitor in the rapidly evolving AI landscape.