SoftBank Soars: $100 Billion AI Chip Project Sparks Investor Frenzy

Japanese multinational telecommunications and internet firm SoftBank Group Corp.’s stock increased as its founder, Masayoshi Son, contemplated starting a $100 billion chip company that would provide AI-enabling semiconductors.

After recent news revealed that the 66-year-old billionaire is looking for funds for a push into AI chips to rival Nvidia Corp., shares of the Tokyo-based tech investor increased by as much as 3.2%. Code-named Izanagi, the initiative aims to create an AI chip business to support SoftBank’s majority-owned chip design company, Arm Holdings Plc.

Izanagi: $100 Billion Bet on AI-Powered Semiconductors

According to one of the sources, Son is looking at a scenario where SoftBank contributes $30 billion, and institutions in the Middle East may contribute an additional $70 billion.

Should he succeed, the chip initiative would surpass Microsoft Corp.’s investment in OpenAI and account for over 5% of the worldwide semiconductor industry. The project (Izanagi), which takes its name from the Japanese god of creation and life, embodies Son’s boundless excitement for the development of artificial general intelligence. He has frequently said that there would be happiness in a world where machines are smarter than people.

Softbank to acquire ARM Holdings

SoftBank Group Corp acquired ARM Holdings plc, the UK-based designer of computer chips for tablets and smartphones, a couple of years ago. Son has watched Arm grow into a reliable success following a string of losses on his early ventures. In the past ten trading days, SoftBank’s shares have increased by roughly 30%, while Arm’s shares have increased by more than 80%.

According to the sources, Son now sees an opportunity in AI to build a business that can compete with the Magnificent Seven stocks.

SoftBank ended December 31 with ¥6.2 trillion ($41 billion) in cash and cash equivalents due to a recovery in international equities markets. Its 90% ownership in Arm and a windfall in T-Mobile US Inc. shares, valued at over $8 billion, helped to strengthen its balance sheet.