SoftBank (SFTBY, finance) and Apollo Global Management (APO, finance) are in talks to create a more than $20 billion fund to invest in artificial intelligence infrastructure, including chipmakers and data centers.
Negotiations have cooled down throughout the summer and a final deal may not be reached, sources familiar with the situation told Semafor.
As the Semafor article points out, this effort could include collaboration with companies like semiconductor company Arm, which is majority-owned by SoftBank. Insiders said SoftBank is in talks with other potential investors, but as Semafor said, discussions with Apollo are the most advanced.
Semaphore claimed that SoftBank CEO Masayoshi Son is looking for a financial partner to take on Nvidia, which dominates the premium AI chip industry. Son’s previous major investments include the $100 billion Vision Fund, established in 2017.
As noted in Semafor’s analysis, the AI push allegations reflect a more general trend, as companies such as BlackRock (BLK, Finance) and Microsoft (MSFT, Finance) are also exploring similar initiatives. . Additionally, Apollo’s financial capabilities, including $700 billion in assets as of June 30, 2024, could make it a major participant in AI financing, Semaphore said.
According to the report, Arm, which backs chipmakers such as Nvidia (NVDA, Financials) and Apple (AAPL, Financials), could be included in future AI-oriented investments by SoftBank.
This article first appeared on GuruFocus.
