Edit Content

June 29, 2022

Search

Edit Content

Menu

SoftBank plans to enter the field of artificial intelligence chips

SoftBank intends to enter the field of artificial intelligence chips SoftBank intends to enter the field of artificial intelligence chips
SoftBank founder Masayoshi Son is accelerating his efforts in the artificial intelligence industry and is now fundraising for his next step in that strategy.
According to a report from the Bloomberg agency, sun is seeking 100 billion dollars to build a new project that would compete with the likes of Nvidia in the field of artificial intelligence chips.


The new project collaborates with Arm, the chip design company that SoftBank turned into a public company last year, and still owns about 90 percent of Arm’s shares as of this month.


The company follows the same rules that it used when raising funds for its huge investment funds Vision Fund.
The report said that SoftBank plans to take advantage of institutional investors in the Middle East by about 70 billion dollars out of the total amount of 100 billion dollars, while the company itself pays the remaining amount of 30 billion dollars.


Currently, NVIDIA dominates the market of artificial intelligence chips through GPU chips.
With the need for AI processors expected to grow and with a lot of work to be done to improve efficiency and cost, there is a clear opportunity for others to compete with alternatives, be it similar GPUs, new GPU approaches, or a different processing approach.


OpenAI CEO Sam Altman is also reportedly in talks with investors in the Middle East to raise between 5 trillion and 7 trillion dollars for a new AI chip project.
OpenAI’s efforts are notable because the company is a leader in the development of generative artificial intelligence, both for powering other services using GPT models, and for powering its own services, such as ChatGPT.


The Bloomberg report said that the Softbank project seems to be separate from Altman’s ambition in the field of artificial intelligence chips.
The new chip project is in line with SoftBank’s new focus on artificial intelligence, and the company has historically earned a significant portion of its returns from its early investment and stake in Chinese e-commerce giant Alibaba, which has earned it more than 70 billion dollars over the years.


The company has been gradually selling its stake in Alibaba to reinvest money in artificial intelligence since March 2023, when SoftBank CFO Yoshimitsu Goto said that the company is preparing to keep up with the looming AI revolution.