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Cloud giants and OpenAI challenge Nvidia's AI chip dominance as SoftBank Group eyes strategic role
Monday, February 2, 2026 at 08:09 PM
Major cloud service providers including Google, Amazon, and Microsoft, along with OpenAI, are intensifying efforts to challenge Nvidia's dominance in the AI semiconductor market, while SoftBank Group's strategic moves are identified as a key factor in the evolving landscape.
Context
The AI semiconductor market is witnessing a major shift as Nvidia faces increasing pressure from its largest customers. While Nvidia currently controls roughly 80% of the AI chip market, cloud giants Microsoft, Amazon, and Google are accelerating the development of proprietary silicon to lower costs and bypass supply bottlenecks. Simultaneously, OpenAI is exploring its own massive hardware initiatives, signaling a coordinated effort by the industry’s biggest spenders to break the current monopoly and diversify a supply chain currently plagued by long lead times and high premiums.
SoftBank Group has emerged as a pivotal player in this power struggle, with CEO Masayoshi Son reportedly seeking up to $100 billion for a new AI chip venture codenamed "Izanagi." Leveraging its majority stake in Arm, SoftBank Group aims to build a vertically integrated AI powerhouse that could compete directly with Nvidia. As global demand for AI compute scales toward a projected $1 trillion market, these strategic shifts mark a transition from merchant-silicon reliance to a competitive landscape of custom, purpose-built architecture.
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