SoftBank and Apollo are in talks to create a massive fund to invest in data centers, chip factories, and other AI projects. This move is part of a growing trend of investors pouring money into the digital revolution. The proposed fund would exceed $20 billion, according to sources close to the matter. Although discussions have slowed down since the summer, there is still a possibility that the fund may not materialize. Industry partners, including Arm, a major chip manufacturer owned by SoftBank, are likely to be involved in this venture.
SoftBank’s CEO, Masayoshi Son, is eager to find a well-funded partner to develop a competitor to Nvidia, a leading player in the high-end AI chip market. Son has a history of creating large investment funds that have had a significant impact on various sectors. The Vision Fund, with a whopping $100 billion launched in 2017, played a major role in inflating the unicorn bubble by heavily investing in startups that were not heavily reliant on technology, such as dog-walking services and WeWork.
Son’s current focus is on artificial intelligence, which he believes will surpass human intelligence by a significant margin in the coming years. He has been vocal about the importance of embracing AI to stay competitive in the market. In a rather eccentric move, Son even sought investment advice from ChatGPT, a language processing AI. He has warned that companies that fail to leverage AI will be left behind. In a presentation slide that raised eyebrows, Son compared skeptics of AI to goldfish.
Both SoftBank and Apollo have chosen not to comment on these discussions. It remains to be seen whether this potential fund will come to fruition and how it will impact the AI industry moving forward. This collaboration could pave the way for significant advancements in AI technology and infrastructure, shaping the future of various industries.