SoftBank Group Corp. founder Masayoshi Son is on a quest to secure around $100 billion to launch a chip venture aimed at competing with Nvidia Corp. and supplying crucial semiconductors for artificial intelligence (AI) applications, according to sources familiar with the matter. Codenamed Izanagi, this project signifies Son's latest ambitious venture as SoftBank scales back its investments in startups.Son's vision entails establishing a company that complements Arm Holdings Plc, SoftBank's chip design unit, and enables him to construct a dominant force in AI chip technology, insiders revealed on condition of anonymity due to the confidential nature of the discussions. One potential scenario involves SoftBank contributing $30 billion, with the remaining $70 billion sourced from institutions in the Middle East.

If successful, this chip project would represent one of the largest investments in the AI sector since the emergence of advanced language models like ChatGPT, surpassing Microsoft Corp.'s recent $10 billion bet on OpenAI. Named after Izanagi, the Japanese god of creation and life, the project underscores Son's anticipation of artificial general intelligence (AGI), which he believes will usher in a safer, healthier, and happier world.The specifics of funding and allocation remain unresolved, with the project subject to further evolution, according to sources. Son continues to explore various investment avenues and strategies to bolster Arm's presence in the AI market and develop next-generation chips.The central players in developing the technology to challenge Nvidia remain unclear. Both SoftBank and Arm declined to comment on the matter.

Following setbacks in startup investments, Son is concentrating his efforts on Arm, aiming to create a formidable company akin to the "Magnificent Seven" stocks. Boosted by a rebound in global equity markets, SoftBank's balance sheet boasted ¥6.2 trillion ($41 billion) in cash and equivalents as of December 31, bolstered by gains in T-Mobile US Inc. shares and Arm's soaring market value.While discussions have occurred between Son and OpenAI's Sam Altman regarding semiconductor manufacturing, Izanagi operates independently from Altman's pursuits. Son previously explored collaboration with another AI-focused company for the chip venture but was rebuffed.

In tandem with Son's AI investments, SoftBank is exploring ways to leverage Arm's chip designs. Arm CEO Rene Haas, serving on the SoftBank board, is advising Son on Project Izanagi, emphasizing the importance of compute power and energy efficiency for AGI realization.Directly overseeing Project Izanagi, Son draws from his experience in establishing SoftBank's Vision Fund, a landmark $100 billion initiative for tech investment. Despite recent reductions in investment activity, Son remains resolute in his pursuit of AGI, urging enterprises to embrace AI or risk falling behind.Son's unwavering commitment to AGI underscores his forward-looking approach to technology, despite the fluidity and uncertainty inherent in his investment strategies.