SoftBank buys chip designing start-up Ampere for $6.5B
What's the story
In a deal worth $6.5 billion, SoftBank Group has acquired Ampere Computing, a US-based start-up famous for its ARM-based server chips. It was established in 2017.
The Carlyle Group and Oracle, which currently own stakes in Ampere, have agreed to sell their shares as part of the transaction.
Once completed, the start-up will operate as an independent subsidiary under SoftBank's ownership, retaining its headquarters in Santa Clara, California.
Deal timeline
Deal completion expected in second half of 2025
The deal is expected to close in the second half of 2025.
Masayoshi Son, Chairman and CEO of SoftBank Group, shared his thoughts on the strategic move as he continues to broaden investments in AI infrastructure.
He said that "Ampere's expertise in semiconductors and high-performance computing will help accelerate this vision, and deepens our commitment to AI innovation in the United States."
AI focus
Ampere's expertise in semiconductors
Ampere Computing has a team of 1,000 semiconductor engineers. The start-up was founded by former Intel executive Renee James.
Reacting to the acquisition news, James said she was excited to join SoftBank Group and work with its leading technology companies.
She added that this partnership would allow them to advance their 'AmpereOne' roadmap for high-performance Arm processors and AI.
Strategic acquisitions
SoftBank's previous acquisition of ARM
In 2016, SoftBank had acquired British chip designer ARM for $32 billion.
ARM-based chips are known for their energy efficiency and are considered an alternative to x86 architecture chips marketed by Intel and AMD.
The acquisition aligns with SoftBank's ongoing efforts to expand its investments in AI infrastructure, including a recent partnership with OpenAI to develop advanced enterprise AI called "Cristal intelligence."