SoftBank has agreed to acquire chip start-up Ampere Computing for $6.5 billion, marking a significant step in founder Masayoshi Son’s drive to expand SoftBank’s role in the artificial intelligence (AI) space. The deal is the latest in a series of strategic investments aimed at building a vast infrastructure for AI, which Son has outlined as encompassing chip design, production, energy, robotics, and data centers.
Ampere, known for making processors designed for cloud computing and data center applications, is closely aligned with SoftBank’s broader vision. The company’s technology is based on designs from UK-based chip designer Arm, which is also majority-owned by SoftBank. This acquisition signals a deeper integration of Ampere’s capabilities into SoftBank’s AI ambitions, positioning it as a critical player as large tech groups continue to surge investment into AI infrastructure.
The acquisition fits into SoftBank’s broader strategic shift, where Arm, which intends to launch its own chip this year, plays a key role. The new chip is expected to tap into the growing demand for AI infrastructure, particularly from big tech companies, and will be designed for servers in large data centers. This development marks a significant departure from Arm’s traditional business model, which relied on licensing its chip designs to firms like Apple and Nvidia.
Ampere’s leadership in cloud computing processors and energy-efficient chip design is seen as a crucial addition to the growing ecosystem around Arm. Ampere was founded by Renée James, the former president of Intel, in 2018. The acquisition is expected to provide SoftBank with an even stronger foothold in AI infrastructure, complementing its earlier acquisition of AI-focused chip start-up Graphcore last year.
In a joint statement, James expressed excitement about the opportunity to accelerate Ampere’s growth, saying, “This is a fantastic outcome for our team, and we are excited to drive forward our road map for high-performance Arm processors and AI.” The acquisition is poised to enhance SoftBank’s competitive position as data center providers increasingly seek to improve energy efficiency and reduce costs, especially in the face of growing demand for AI processing capabilities.
In addition to this acquisition, SoftBank and OpenAI recently unveiled the Stargate initiative, which involves an estimated $500 billion investment to build AI infrastructure across the United States. The project has garnered significant backing from entities like Abu Dhabi state fund MGX and Oracle. As part of the Stargate initiative, Arm will play a pivotal role, along with other tech giants like Microsoft and Nvidia.
Ampere will continue to operate as a wholly owned subsidiary of SoftBank but will retain its name. Investors Oracle and private equity firm Carlyle will sell their stakes in the company as part of the deal, which is expected to close in the latter half of this year. This acquisition further cements SoftBank’s ambitions to dominate the growing AI infrastructure market and align itself at the heart of the next phase in tech evolution.
