AI chips are in trend, and their market size is going to increase in the upcoming years due to their demand. According to a report by Bloomberg, Japanese billionaire and cofounder of Softbank, Masayoshi Son, is seeking $100 billion in investment for his new AI chip project. The project is code named ‘Izanagi’ and it aims to push towards artificial general intelligence (AGI). This AI chip venture will compete with Nvidia, which is currently producing the majority of AI chips. 

This new venture of Masayoshi Son is going to collaborate with UK-based chip design company Arm. Arm was previously acquired by Softbank, and it currently holds the majority of Arm’s stock.

According to reports, out of the $100 billion, $30 billion will be contributed by Softbank itself, whereas the remaining $70 billion will be contributed by Middle East-based institutional investors.

Softbank stock rose by 3.2% after news of founder Masayoshi Son seeking $100 billion for an AI chip venture came out. 

Sam Altman and Masayoshi Son Joining Forces?

Recently, OpenAI’s CEO, Sam Altman, was reportedly seeking a whopping $7 trillion for his new AI chip project. Altman was talking to various investors, including the government of the UAE. Son’s project is different from Altman’s project, but according to reports, both have spoken about joining forces to manufacture AI chips.

Both Son and Altman know the importance of AI chips and believe the demand for AI chips is going to increase in the upcoming decade. The unavailability of these chips will hinder the use of artificial intelligence and thereby hinder the productivity of users. 

Conclusion

The news of Masayoshi Son raising $100 billion shows the importance of AI chips in the upcoming feature. If successful, it will be the biggest investment in the AI industry, overshadowing Microsoft’s $10 billion investment in OpenAI.

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