According to Bloomberg, SoftBank's son is attempting to raise around $100 billion for an AI chip project

According to Bloomberg, SoftBank's son is attempting to raise around $100 billion for an AI chip project

The article states that the initiative will get $30 billion from the corporation and an extra $70 billion from Middle Eastern banks.

SoftBank is well-known for its large-scale spending on startups in the technology sector.

Raising $100 billion for a semiconductor company that would compete with Nvidia Corp is what SoftBank Group Chief Executive Officer Masayoshi Son plans to do, according to a Friday Bloomberg News article that cited individuals with knowledge of the situation.

According to the article, the project, code-named Izanagi, would provide the semiconductors required for artificial intelligence (AI).

The article states that the corporation will contribute $30 billion to this endeavor, with the possibility of an additional $70 billion coming from institutions in the Middle East.

When Reuters reached out to SoftBank outside normal business hours for comment, the company did not immediately reply.

According to LSEG, the Japanese corporation already controls almost 90% of the British chip designer Arm.

Yoshimitsu Goto, the CFO of SoftBank, said earlier this month that Arm would become essential for AI and that the chip designer is the "core center" of SoftBank's network of enterprises.

Earlier this month, Arm officials said that the business was seeing significant demand for its central processors to supplement Nvidia's chips for artificial intelligence applications in data centers.

SoftBank is well-known for its large-scale spending on startups in the technology sector.

However, it had shifted to a defensive stance as a result of value losses brought on by the pandemic and investors' decreased risk appetite brought on by increasing interest rates.

Because the Japanese digital investment business was optimistic about increases in portfolio firms, it generated a profit earlier this month, marking the first time it had done so in five quarters.