SoftBank Group’s CEO, Masayoshi Son, is planning to fund up to $100 billion for a semiconductor business to compete with Nvidia Corp.
SoftBank Group (9984.T) opens a new tab. Bloomberg News reported on Friday that CEO Masayoshi Son is looking to fund up to $100 billion for a semiconductor company that will compete with Nvidia Corp. (NVDA.O), according to individuals familiar with the situation.
The Izanagi project will offer semiconductors required for artificial intelligence (AI), according to the report, which opens a new tab.
According to an article, the business plans to invest $30 billion in the project, with an additional $70 billion coming from Middle Eastern banks.
According to LSEG, the Japanese corporation already owns almost 90% of Arm, the British chip designer.
SoftBank CFO Yoshimitsu Goto stated earlier this month that Arm would soon be indispensable in AI and has previously referred to the chip designer as “the core of the core” of SoftBank’s group of companies.
Arm executives stated earlier this month that the business was experiencing high demand for its core processors to supplement Nvidia’s chips for AI work in data centers.
SoftBank is well-known for its high-conviction investments in companies on an unprecedented scale.
However, it adopted a defensive strategy after being stung by falling valuations in the aftermath of the pandemic, when rising interest rates reduced investor appetite for risk.
Earlier last month, the Japanese IT investment business reported its first profit in five quarters.
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