Home SoftBank’s Masayoshi Son wants to raise $100bn for a fresh AI chip venture

SoftBank’s Masayoshi Son wants to raise $100bn for a fresh AI chip venture

SoftBank Group’s Masayoshi Son is making the next move in his far-reaching artificial intelligence (AI) strategy, fundraising $100 billion for a new chip venture.

The Softbank founder has long since been clear about the company’s focus on AI, with SoftBank chief financial officer Yoshimitus Goto also telling the Wall Street Journal that the company was “getting ready to go on the offensive with the AI revolution on the horizon” last year. Now, a new AI chip venture appears to be the next link in the chain.

Reportedly dubbed the codename of Izanagi, the new venture would see Softbank collaborate with Arm, the chip design company that SoftBank made a public company last year, although still owning a 90% share.

Bloomberg reports that Softbank plans to pull in roughly $70 billion from Middle Eastern investors while providing the remaining $30 billion itself. The goal for the venture is to grow Arm to be able to compete with Nvidia, the current global leader when it comes to AI chip production.

However, with more and more AI applications appearing every day it seems, there’s an ever-expanding market for AI chips – something that Masayoshi Son wants to cash in on. New innovations mean that there’s also space for fresh competition, whether that means like-for-like GPUs, unique approaches to GPUs, or an entirely new processing approach.

Softbank and its AI push

While this strategy is forward-thinking in so far as AI is a future-proofed industry, it’s somewhat reactive from Softbank. The company needs a way to replenish its profits after reporting a $32 billion loss with one of its arms in 2023.

However, Arm has been one of its more profitable areas since then, making smartphone chips for Apple, Google, Microsoft, and Amazon, specializing in the design and integration of large language models. Gains from both Arm and Vision Fund saw Softbank post its first quarterly profit for the last quarter of 2023, marking the end of almost three years of straight losses for every quarter of the year.

Featured image: Pexels

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Rachael Davies
Tech Journalist

Rachael Davies has spent six years reporting on tech and entertainment, writing for publications like the Evening Standard, Huffington Post, Dazed, and more. From niche topics like the latest gaming mods to consumer-faced guides on the latest tech, she puts her MA in Convergent Journalism to work, following avenues guided by a variety of interests. As well as writing, she also has experience in editing as the UK Editor of The Mary Sue , as well as speaking on the important of SEO in journalism at the Student Press Association National Conference. You can find her full portfolio over on…

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.