Ampere chip designer to be acquired by SoftBank for $6.5 billion
SoftBank Group announced on Wednesday that it will acquire Ampere Computing, a startup specializing in Arm-based server chips, in a deal valued at $6.5 billion. The Japanese multinational anticipates that the acquisition will be finalized in the latter half of 2025, as stated in its official announcement.
As part of the agreement, both Carlyle Group and Oracle have pledged to sell their respective shares in Ampere. Despite the acquisition, Ampere will continue to function as an independent subsidiary under SoftBank’s umbrella, maintaining its current headquarters in Santa Clara, California.
Masayoshi Son, Chairman and CEO of SoftBank Group, highlighted the strategic importance of this deal, emphasizing Ampere’s role in advancing semiconductor technology and high-performance computing. Son emphasized that Ampere’s proficiency in semiconductors and advanced computing will play a crucial role in driving this vision forward while strengthening our dedication to AI advancements within the United States.
SoftBank also noted that Ampere boasts a team of 1,000 semiconductor engineers, reinforcing the company’s capabilities in AI and chip development. The move aligns with SoftBank’s broader efforts to expand its footprint in AI infrastructure, including a recently announced collaboration with OpenAI to develop enterprise-grade artificial intelligence solutions. Additionally, SoftBank has been involved in the ambitious $500 billion Stargate AI investment initiative, spearheaded by former U.S. President Donald Trump.
Renee James, the founder and CEO of Ampere, expressed excitement about the acquisition, saying, “We are thrilled to join SoftBank Group and collaborate with its portfolio of top technology firms, as we have a common vision for improving AI. Our team is thrilled with this result, and we can’t wait to further our AmpereOne® roadmap for AI and high-performance Arm processors.”
SoftBank has a history of investing in the semiconductor industry. The company previously acquired British chip design giant Arm in 2016 for $32 billion, later launching Arm’s initial public offering (IPO) in 2023.
Arm-based processors present an alternative to chips built on the x86 architecture, which is dominated by Intel and AMD. These Arm-designed processors are often praised for their energy efficiency, making them a preferred choice for many cloud computing applications.
Ampere was founded in 2017 by Renee James, who had previously spent 28 years at Intel, eventually rising to the position of president before launching her own venture.
The demand for Arm-based chips has grown significantly in recent years, particularly in the cloud computing industry. Amazon Web Services (AWS), one of the world’s leading cloud infrastructure providers, has introduced its Graviton series of Arm chips, which have gained traction among enterprise customers. Similarly, in October, Microsoft began offering access to its Cobalt 100 series of Arm-based cloud computing instances.
Despite the announcement of this major acquisition, shares of SoftBank saw a slight dip, trading approximately 2% lower on Thursday.
