Japanese technology investor SoftBank is discussing how to secure a substantial amount of Nvidia's graphics processing units (GPUs), which are crucial for artificial intelligence (AI) development.
This latest move appears to be part of CEO Masayoshi Son's broader plan to position SoftBank as a leader in AI technology. According to reports by The Information, SoftBank has been in talks with banks to borrow up to $10 billion for energy-related projects driven by AI demands.
SoftBank, which has investments in companies like Tencent, T-Mobile, 10x Genomics, and Automation Anywhere, may form a special purpose company to use the borrowed funds to purchase GPUs, then lease these GPUs back to SoftBank, thus keeping the debt off its balance sheet.
These discussions indicate SoftBank's intent to increase its investment in AI infrastructure. The plan to secure Nvidia GPUs reflects the growing importance of these chips in advancing AI technology, particularly in their role in processing complex AI algorithms.
At the same time, SoftBank is also exploring energy investments to meet the power demands of AI data centers. Innovations being considered include renewable energy and nuclear technology to ensure ample power supply for these centers.
On the other hand, Masayoshi Son has so far avoided investing in generative AI companies, despite these companies recently becoming favorites among global investors. According to The Information, he even blocked SoftBank's Vision Fund from investing in Mistral, a Paris-based open-source model developer.
