Masayoshi Son, the founder of SoftBank Group Corp., is embarking on a groundbreaking endeavor to establish a formidable presence in the AI chip market. Code-named Izanagi, this project represents Son’s vision to create a company capable of rivaling Nvidia Corp. and revolutionizing the semiconductor industry by supplying chips crucial for artificial intelligence applications.
Son’s project, Izanagi, symbolizes his transition away from startup investments towards groundbreaking ventures in the semiconductor domain. With an ambitious funding target of up to $100 billion, Izanagi aims to complement SoftBank’s chip design arm, Arm Holdings Plc, and emerge as a dominant force in AI chip development.
SoftBank is poised to contribute $30 billion to the venture, while the remaining $70 billion may come from institutions in the Middle East. Although the specifics of the project’s financing and execution are yet to be finalized, Son is actively exploring partnerships and investment strategies to bolster Arm’s foothold in the AI market.
While Son’s initiative signals a monumental investment in AI technology, challenges loom regarding technology development and market competition. Nvidia currently dominates the high-end AI accelerator market, posing a significant obstacle for Izanagi’s aspirations. However, Son remains undeterred, envisioning Izanagi as a catalyst for disruptive innovation in the semiconductor landscape.
As a pivotal member of SoftBank’s board and Arm’s CEO, Rene Haas plays a crucial role in advising Son on Izanagi’s implementation. SoftBank’s balance sheet, buoyed by substantial cash reserves and the surging valuation of Arm, provides a strong foundation for Son’s ambitious venture.
Masayoshi Son’s pursuit of Izanagi underscores his unwavering commitment to technological innovation and AI advancement. As he navigates the complexities of the semiconductor industry, Son aims to position Izanagi as a trailblazer in AI chip development, shaping the future of computing and artificial intelligence.
Source: Adapted from Bloomberg article “Masayoshi Son Seeks to Build a $100 Billion AI Chip Venture”