More on News
PM Modi Discusses Role of Technology in Agriculture, Education, and Health with Bill Gates
-
Team Eela
In a bold move to build dominance in the generative AI field, Masayoshi Son, the founder and CEO of SoftBank, has announced plans to secure a staggering $100 billion for his AI chip venture, directly challenging Nvidia’s supremacy in the market. Reports from Bloomberg suggest SoftBank intends to allocate $30 billion from its capital, with an additional $70 billion sought from Middle Eastern investment firms.
The massive investment aims at SoftBank’s determination to solidify its position in the AI sector and potentially disrupt Nvidia’s dominance. Interestingly, the proposed AI chip venture is expected to complement the operations of UK chip designer Arm, in which SoftBank holds a controlling position.
Recent events, including Nvidia’s $147.3 million investment in Arm, supported by SoftBank, have brought the company to the forefront, highlighting the ever-evolving landscape of the tech industry.
SoftBank’s journey with Arm has been marked by significant milestones, starting with its acquisition for $32 billion in 2016. However, regulatory obstacles hindered efforts to sell Arm to Nvidia for $40 billion in 2022, highlighting the complexities of high-value transactions in the tech industry.
Meanwhile, Masayoshi Son’s ambitious plans align with similar initiatives in the tech industry. Sam Altman, co-founder and CEO of OpenAI, is actively seeking funding for a transformative tech initiative to improve global AI chip-building capacity, estimated to require up to $5 trillion to $7 trillion.
With global AI chip sales surpassing $527 billion last year and projected to exceed $1 trillion annually by 2030, the race to harness AI’s potential is set to intensify. As companies like SoftBank and Nvidia compete for dominance, the future of AI innovation hangs in the balance.
Investors are eagerly awaiting Nvidia’s earnings report, scheduled for release on Wednesday, February 21, after the market closes. Analysts anticipate a significant revenue and profit surge driven by advancements and increasing demands in the AI domain.
More on News
More on News