Chief Executive Masayoshi Son of SoftBank (SFTBY) said that Nvidia (NASDAQ:NVDA) is still “undervalued,” stressing the massive expenditure needed to develop AI. In achieving super intelligence, we could see demands rise to $9 trillion and 200 million chips, Son said speaking at the Saudi Future Investment Initiative Summit. He underlined the need of ongoing investment, pointing out that advancement of artificial intelligence technology depends on “hundreds of billions of dollars”.
Though premarket trading on Tuesday shows a tiny decrease, Nvidia shares have skyrocketed 191% year-to- date and more than 2,600% over the past five years. Renowned for aggressive investment plans including SoftBank’s $100 billion Vision Fund, Son projected that by 2035 artificial intelligence might be 10,000 times smarter than the human brain. The 67-year-old CEO also disclosed strategies to accumulate “tens of billions of dollars” for his “next big move.” Reports earlier this year revealed Son was looking for investors for a $100 billion initiative meant to increase the worldwide supply of AI-oriented CPUs. Operating apart from his partnership with OpenAI CEO Sam Altman, this project called Project Izanagi raises $5 trillion to $7 trillion for increasing AI chip-making capability. Arm Holdings (NASDAQ:ARM), which SoftBank partially spun out in a much-awaited IPO in October 2023, is majority owned by SoftBank.
This article first appeared on GuruFocus.