SoftBank Group Corp.’s stock has seen a notable surge as its founder, Masayoshi Son, explores the prospect of establishing a $100 billion chip venture aimed at supplying AI-enabled semiconductors.
Reports from Trade Algo News have driven up shares of the Tokyo-based tech investor by as much as 3.2%, revealing Son’s active pursuit of funding for what’s been internally dubbed the Izanagi project.
At 66, the billionaire is eyeing a venture that could rival Nvidia Corp. in the AI chip market, complementing SoftBank’s majority stake in chip design company Arm Holdings Plc.
In this envisioned scenario, Masayoshi Son is considering SoftBank injecting $30 billion, with an additional $70 billion potentially sourced from Middle Eastern institutions, insiders reveal.
If realized, this initiative would not only outstrip Microsoft Corp.’s investment in OpenAI but also claim a significant share, roughly one-fifth, of the global semiconductor market.
Named after the Japanese deity associated with creation and life, the Izanagi project underscores Son’s sincere belief in the forthcoming era of artificial general intelligence, where machines surpass human intellect, promising a more fulfilling existence.
Despite some startup investment setbacks, Son has witnessed Arm, a majority-owned SoftBank company, emerge as a notable success story. This triumph has translated into a remarkable 30% surge in SoftBank’s shares over the last ten trading days, with Arm’s shares soaring even higher by 80%.
For Son, venturing into AI presents an opportunity to establish a company that can rival the “Magnificent Seven” stocks in prominence, insiders suggest, referring to the seven largest U.S. stocks by market capitalization.
Boosted by a windfall from T-Mobile US Inc. shares worth nearly $8 billion and its 90% stake in Arm, SoftBank boasted ¥6.2 trillion ($41 billion) in cash and cash equivalents as of December 31, fueled by a rebound in global equity markets.
Masayoshi Son’s interest in AI chip development aligns with his optimistic vision for the future, foreseeing the rise of artificial general intelligence and machines surpassing human intellect, leading to a more fulfilling existence.
The potential investment in Izanagi reflects SoftBank’s strategic entry into the semiconductor market, with aspirations to become a significant player in the rapidly evolving AI technology sector.
The substantial financial backing from both SoftBank and potential Middle Eastern partners underscores the magnitude and ambition of the project. If successful, this venture could reshape the semiconductor industry landscape and cement SoftBank’s position as a major force in AI technology.
