SoftBank Founder’s Ambitious Chip Venture Sends Stocks Soaring

SoftBank Group Corp. experienced a notable surge in its stock value following reports that founder Masayoshi Son is contemplating the establishment of a groundbreaking $100 billion chip venture dedicated to the production of AI-enabling semiconductors.

Shares of the Tokyo-based tech conglomerate soared by up to 3.2% in response to revelations that the 66-year-old billionaire is actively seeking funding for the venture, purportedly named Project Izanagi, aimed at penetrating the AI chip market and challenging industry titan Nvidia Corp. This ambitious endeavor is envisioned to complement SoftBank’s existing majority stake in Arm Holdings Plc, a leading chip design company.

Inspired by his fervent belief in the transformative potential of artificial general intelligence, Son envisions Izanagi as a testament to his unwavering enthusiasm for technological innovation. SoftBank’s recent successes, particularly with Arm, have bolstered Son’s confidence in venturing into new frontiers, with the company’s stock witnessing a remarkable uptick of approximately 30% in the last ten trading days, alongside an impressive surge of over 80% in Arm’s shares.

With a substantial cash reserve of $41 billion as of December 31st, propelled by favorable equity market conditions and windfalls from investments such as T-Mobile US Inc. shares, SoftBank stands poised to embark on this ambitious endeavor, positioning itself as a formidable player in the burgeoning AI chip market.

Have you read?
Ranked: The World’s 20 Best Countries for Women, 2023.
Countries That Surprisingly Don’t Sell Coca-Cola Or Pepsi.
Top 20 richest owners of sports teams worldwide, 2023.
Ranked: Meet the Youngest Billionaires in America, 2023.
Report: These Are The Best Citizenship by Investment Countries in 2023.