SoftBank is looking at the possibility of investing or forming a partnership with OpenAI
The Japanese conglomerate is planning to invest billions of dollars in the field of AI following the successful listing of Arm.
artificial intelligence
Highlights
- SoftBank, led by CEO Masayoshi Son, is investing billions in AI after Arm's $65B IPO
- The company eyes OpenAI partnership to strengthen its position in the AI chip market
SoftBank, led by its founder and CEO Masayoshi Son, is actively seeking opportunities in the field of artificial intelligence (AI) following the successful IPO of UK chip designer Arm. With a substantial financial boost from Arm's IPO, estimated to be around $65 billion, SoftBank is looking to invest tens of billions in AI initiatives.
One potential avenue for investment is OpenAI, which is backed by Microsoft. SoftBank is considering various options, including a significant investment in OpenAI or potentially forming a broader strategic partnership with the company.
SoftBank eyes to compete with Nvidia
SoftBank is also exploring alternatives to OpenAI, which may include investing in competitors of OpenAI. Additionally, there were preliminary discussions about acquiring Graphcore, a UK-based AI chipmaker, although Graphcore has denied receiving an offer from SoftBank.
Masayoshi Son, who has expressed his interest in AI and is known to be a user of AI technologies like ChatGPT, has a close relationship with Sam Altman, the CEO of OpenAI. SoftBank's mobile unit already has a business partnership with OpenAI to offer generative AI technology services in Japan, based on Microsoft's Azure computing platform. Microsoft itself invested $10 billion in OpenAI earlier this year.
Son's enthusiasm for making deals has surged recently, shifting from a "defensive mode" during the pandemic to an "offensive mode" in which he is actively pursuing new opportunities. His vision includes positioning SoftBank as a formidable player in the AI space, particularly in AI chips, a market currently dominated by Nvidia.
Arm aims to expand into AI but lags behind Nvidia
Arm, in its recent IPO roadshow, highlighted its ambitions in AI to diversify from its primary focus on smartphones and expand into cloud computing. However, analysts point out that Arm's role in the development of large language models like ChatGPT is smaller compared to companies like Nvidia, which has seen significant market value growth due to its dominance in AI chips. Notably, SoftBank had previously invested in Nvidia in 2017 but later sold its stake in 2019.
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