SoftBank Explores $100 Billion 'Izanagi' AI Chip Venture to Challenge Nvidia

SoftBank Group Corp. is exploring a colossal venture to build an AI chip powerhouse, seeking to raise as much as $100 billion in a direct challenge to industry titan Nvidia. According to a Bloomberg News report on Friday, the initiative is codenamed 'Izanagi,' after the Japanese god of creation.

The potential funding structure involves $30 billion from SoftBank itself, with an additional $70 billion potentially sourced from institutions in the Middle East, sources familiar with the matter told Bloomberg. The move signals founder Masayoshi Son's ambition to create a major player in the essential market for AI semiconductors.

The codename 'Izanagi' is deeply symbolic, representing Son's goal to create a new leader from the ground up, rather than simply investing in existing ones. This new entity would complement Arm Holdings, the British chip designer that SoftBank controls, creating a formidable force in the AI hardware space.

This pivot towards building foundational companies represents a significant strategic shift for SoftBank, which has recently focused on navigating the struggles of its Vision Fund investment arm. It's a high-stakes bet on building the core infrastructure for the AI revolution.

It's crucial to note that the project is still in its exploratory phase. The Bloomberg report emphasized that details, including the final funding amount and structure, are still under discussion and could change.

Masayoshi Son's 'Izanagi' gambit isn't just another tech investment; it's a strategic pivot to build the core infrastructure of the AI economy. After the Vision Fund's high-profile stumbles, SoftBank is shifting from a venture capital 'kingmaker' to a foundational 'builder,' leveraging its control of Arm. For investors, this signals a new, high-stakes battle for the future of computing, one that could disrupt Nvidia's near-monopoly but also carries immense execution risk.