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SoftBank founder Masayoshi Son joins AI chip race

Masayoshi Son. (File Photo: IANS)

SoftBank may infuse $30 billion and can raise $70 billion from investment firms in the Middle East, reports Bloomberg, citing sources….reports Asian Lite News

As the generative AI race heats up, SoftBank Founder and CEO Masayoshi Son is reportedly aiming to raise about $100 billion for his AI venture, in a bid to take on graphics chip giant Nvidia.

SoftBank may infuse $30 billion and can raise $70 billion from investment firms in the Middle East, reports Bloomberg, citing sources.

The AI venture would complement the business of UK chip designer Arm, in which SoftBank has a 90 per cent stake after its IPO.

Arm’s shares went up this week after Nvidia disclosed it had acquired a $147.3 million stake in the SoftBank-backed firm.

Arm was acquired by SoftBank for $32 billion in 2016. SoftBank failed to sell it for $40 billion to Nvidia in 2022 amid regulatory hurdles. Softbank’s Son is not alone in the race to build a next-generation AI venture with billions of dollars.

According to a latest report in the Wall Street Journal, OpenAI Co-founder and CEO Sam Altman is in talks with investors, including the UAE government, to raise funds for a tech initiative that would boost the world’s chip-building capacity.

“The project could require raising as much as $5 trillion to $7 trillion,” the report mentioned, citing sources. Altman has often said there aren’t enough high-end GPUs to power OpenAI’s quest for AI. Global sales of chips were $527 billion last year and are expected to rise to $1 trillion annually by 2030.

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SoftBank Eyes OpenAI After Arm IPO

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SoftBank, which acquired Arm for $31 billion in 2016, controls about 90 per cent of shares outstanding….reports Asian Lite News

Japanese major SoftBank is mulling to make an investment in Sam Altman-run OpenAI after the blockbuster listing of British chip designer Arm owned by Softbank, the media reported on Saturday.

Masayoshi Son, SoftBank’s founder and CEO, is potentially “looking to invest tens of billions in AI after completing Arm’s initial public offering,” reports The Financial Times.

“SoftBank could also look to strike a broad strategic partnership with the ChatGPT maker,” the report noted.

UK chip designing giant Arm’s stock surged about 25 per cent during its first day of trading on Nasdaq after selling shares at $51 a piece in its US initial public offering (IPO).

SoftBank, which acquired Arm for $31 billion in 2016, controls about 90 per cent of shares outstanding.

Arm’s IPO is reportedly set to expand SoftBank’s war chest to as much as $65 billion.

According to the report, SoftBank is also looking at making substantial investments in direct rivals of the ChatGPT maker.

SoftBank said in a statement that “We do not comment on rumours.” OpenAI declined to comment on the report.

Microsoft earlier invested $10 billion in OpenAI in a multi-year deal.

Arm priced its shares at the upper end of its expected range on Wednesday.

Arm has developed and licensed high-performance, low-cost, and energy-efficient central processing unit (CPU) products and related technology.

Arm was supposed to be acquired by graphics chip giant Nvidia for $40 billion in 2020, but the deal was called off in February 2022, owing to “significant regulatory challenges preventing the consummation of the transaction”.

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SoftBank offloads its VC arm

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The acquisition comes after SoftBank and its Vision Fund registered huge financial losses amid the overall slump in the world of technology…reports Asian Lite News

Japanese investment giant SoftBank is selling one of its venture capital arms, SoftBank Ventures Asia (SBVA), to Singaporean investment firm The Edgeof, as VC funding remains scarce amid the global macroeconomic conditions.

The acquisition comes after SoftBank and its Vision Fund registered huge financial losses amid the overall slump in the world of technology.

The Edgeof, a newly-established entity, will be led by Founder Taizo Son (SoftBank CEO Masayoshi Son’s younger brother), and Co-founder and Chairman Atsushi Taira from the founding team of Mistletoe.

The Edgeof will leverage Mistletoe’s know-how and establish a pan-Asian ecosystem for ‘aStartups’ by discovering, investing and supporting the growth of game-changing startups, the companies said in a statement.

The company defines “aStartups” as startups that have a mission to address fundamental problems in the world with advanced technology.

SoftBank Group will collaborate closely with The Edgeof, offering valuable expertise, industry insights, and an extensive network to drive innovation and promote growth.

The acquisition is contingent upon regulatory approval and is expected to be completed this year.

“Through this acquisition, we aspire to build an ecosystem that enables visionary entrepreneurs and their startups to effect significant, positive societal change,” said Taira.

Following the acquisition, a fresh brand identity will be unveiled to signify the firm’s commitment to cultivating groundbreaking technologies across the region.

Son, Founder, The Edgeof, said, “We are confident that our collective strengths and resources will ignite a new era of revolutionary technologies and solutions, establishing us as a prominent influence in developing and expanding startups worldwide.”

Founded in 2000, SoftBank Ventures Asia is an early-stage venture capital firm based in Seoul and currently operates nearly $2 billion funds under management.

Since its inception, SoftBank Ventures Asia has focused on ICT investments, including AI, IoT, and smart robotics, with global investment professionals in Seoul, Beijing, Singapore, and San Francisco.

In February this year, SoftBank had posted a loss of nearly $6 billion in the quarter that ended in December.

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