The shares of SoftBank Group Corp. rose as founder Masayoshi Son contemplates the creation of a $100 billion chip startup that would deliver AI-enabled semiconductors.
Shares in the Tokyo-based technology investor gained as much as 3.2% after Bloomberg News reported that the 66-year-old billionaire is seeking funding for a foray into AI chips to compete with Nvidia Corp. The project, codenamed Izanagi, would be. aimed at building an AI chip company that would complement Arm Holdings Plc, the chip design company in which SoftBank holds a majority stake.
In one scenario that Son is considering, SoftBank would provide $30 billion, with $70 billion potentially coming from institutions in the Middle East, one of the people said.
If he succeeds, the tweet project would reduce not only Microsoft Corp.’s bet. on OpenAI but would comprise about a fifth of the global semiconductor market. Named after the Japanese god of creation and life, the project reflects Son’s unbridled enthusiasm for the arrival of artificial general intelligence. He often said that a world full of machines smarter than humans would be happier.
After a series of setbacks in his startup investments, the Japanese entrepreneur has seen Armo blossom into solid success. SoftBank shares have gained about 30% in the last 10 trading days, with Arm shares up more than 80%.
In AI, Filo now sees an opportunity to create a company rivaling the Magnificent Seven stocks, the people said.
SoftBank had ¥6.2 billion ($41 billion) in cash and cash equivalents as of Dec. 31, thanks to a rebound in global stock markets. Its balance sheet received a boost in profits in shares of T-Mobile US Inc., worth nearly $8 billion, as well as the company’s 90% stake in Arm.
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Published: 19 Feb 2024, 07:18 IST