As the AI wars are picking heat, so are the chip wars. Masayoshi Son, the founder of Softbank Group Corporation, over the weekend stated he is considering the creation of a $100 billion chip venture that would supply AI-enabling semiconductors. Post this news, the shares of the Japanese tech form is said to have gained 3.2 per cent.
A report by Bloomberg News stated the billionaire seeking funding to venture into AI chips to compete with Nvidia. The project has been reported to be named Izanagi (named after the Japanese god of creation and life), is focussed on building an AI-chip venture. This venture will reportedly complement Arm Holdings, the chip design company the Japanese conglomerate has a majority stake in.
If Son is able to raise $100 billion, this project would take up roughly a fifth of the global semiconductor market, and also dwarf Microsoft’s OpenAI. Arm Holdings is one of Son’s big successes, after facing a series of setbacks in the past few years in startup investments.
The Japanese conglomerate’s shares have gained over 30 per cent in the last 10 trading days, seeing a surge in Arm’s share by over 80 per cent. Softbank had over 6.2 trillion yen, (approximately $41 billion), in cash and cash equivalents as of December 31, 2023. The conglomerate’s balance sheet got a shot in the arm, with T-Mobile US shares, which are worth $8 billion, along with Softbank’s 90 per cent stake in Arm.
