Masayoshi Son's Quest for AI Supremacy

AI image of nvidia with thundering in the background

AI image of nvidia with thundering in the background

The race for dominance in generative AI has reached a fever pitch, with Softbank's founder and CEO, Masayoshi Son, leading a bold drive to solidify his company's leadership in the sector.

Son's plan to fund $100 billion for a new AI enterprise directly challenges Nvidia's dominance in the AI and graphics chip sectors. His plan is backed by $30 billion in SoftBank's financing and, seeking an additional $70 billion from Middle Eastern investors, has the potential to alter the market dynamics currently controlled by Nvidia.

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The core of this venture is SoftBank's strategic partnership with Arm, a UK-based chip designer in which it owns 90%. Arm, a player in chip innovation, gained further popularity after SoftBank orchestrated Nvidia's $147.3 million investment, highlighting the severe competition in the technology market.

Arm's remarkable journey—from SoftBank's $32 billion acquisition in 2016 to a failed $40 billion sale to Nvidia in 2022 due to regulatory issues—demonstrates the high stakes in the changing AI ecosystem.

Masayoshi Son's vision is part of a broader global trend. OpenAI's CEO, Sam Altman, is also working on revolutionary AI improvements, seeking contributions from institutions such as the UAE government to increase chip-building capacity.

Altman's ambitious ideas could require up to $7 trillion in funding, showing the growing demand for improving GPU capabilities.

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With worldwide chip sales expected to surpass $1 trillion annually by 2030, the stakes are higher than ever.

Son's dedication to receiving AI and chip technology represents a seismic shift in the industry as major competitors compete for dominance in this transitional period.