SoftBank Group Corporation, led by Masayoshi Son, has reportedly made a $500 million investment in OpenAI, the company behind ChatGPT. This investment is part of a larger $6.5 billion funding round that has catapulted OpenAI’s valuation to $150 billion. The investment will be made through SoftBank’s second Vision Fund, primarily backed by Son’s personal wealth.
SoftBank, owner of Arm Holdings, has abandoned its plan to partner with Intel to build an AI chip, instead turning to TSMC. The move is a setback for Intel and the US CHIPS Act, as SoftBank was seeking US government funding for the project. The decision was driven by Intel’s inability to meet SoftBank’s demands for speed and volume.
Nvidia’s stock is trading higher after reports surfaced that SoftBank is turning to TSMC for AI chip production instead of Intel. This decision comes after Intel failed to meet SoftBank’s demands for volume and speed, potentially due to its financial struggles. While TSMC’s high demand may pose challenges, SoftBank remains dedicated to its AI ambitions and is exploring partnerships with Google and Meta for expertise and resources. Despite its recent selloff, Nvidia’s valuation remains attractive amidst the growing AI frenzy.
SoftBank Group Corp.’s Vision Fund has been quietly selling off billions of dollars’ worth of its publicly-listed holdings, a sign of founder Masayoshi Son’s shift away from the venture capital deals that were once an obsession and toward strategic investments in semiconductors and artificial intelligence. The world’s biggest startup fund has seen its US-listed portfolio shrink by almost $29 billion since the end of 2021, as it sold down stakes in companies such as Coupang Inc., DoorDash Inc. and Grab Holdings Ltd. and share prices fell. The one-time tech kingmaker is now a shadow of its former self, having laid off more than a hundred staff and slowed new investments to a fraction of its past pace. Son is selling off assets from the fund’s portfolio as he prepares for possible forays into AI and related hardware, according to people familiar with the billionaire’s thinking.
