Inside Izanagi: A Complete Guide to Masayoshi Son’s $100 Billion AI Venture from SoftBank Fund

SoftBank’s CEO Masayoshi Son has recently unveiled plans for a groundbreaking $100 billion AI chip project, known as Izanagi, in a direct move to compete with the leading company in the AI chip space, Nvidia Corporation. The initiative aims to contribute to the production of essential semiconductors for AI applications.

The project, named after the Japanese god of creation and life, represents a significant shift for SoftBank as it scales back investments in start-ups. The company envisions Izanagi complementing its chip design unit, Arm Holdings Plc, to build a robust AI chip powerhouse. SoftBank, which owns approximately 90% of Arm, is set to provide $30 billion for the project, with an additional $70 billion potentially sourced from Middle Eastern institutions.

If successful, the Izanagi chip project could become one of the largest investments in the AI sector, surpassing Microsoft’s recent $10 billion investment in OpenAI. SoftBank, with a history of making significant bets on start-ups, has returned to profitability, positioning itself well for this venture.

The project’s details regarding funding allocation and potential evolution remain unresolved. SoftBank’s CEO, Masayoshi Son, remains committed to strengthening Arm’s presence in the AI market and exploring next-generation chip possibilities. He is targeting the creation of a significant company akin to the Magnificent Seven stocks.

While discussions have occurred with OpenAI’s Sam Altman about semiconductor manufacturing, Izanagi is a distinct project. Arm CEO Rene Haas, a SoftBank board member, is advising Son on the project, emphasizing the potential of AI-related investments using Arm’s chip designs.

Son’s enthusiasm for AGI (artificial general intelligence) is driving Project Izanagi, as he firmly believes AGI will become a reality within the next 10 years. His move into the AI chip space showcases SoftBank’s strategic shift and its determination to be a major player in the AI market.

The collaboration between SoftBank and Arm, as well as the potential implications of Izanagi’s success, mark a significant development in the AI and semiconductor industries. With the backing of substantial funds and a visionary leader, Izanagi is set to make waves in the realm of AI chip manufacturing and design.