SoftBank Expands AI Ambitions with $6.5 Billion Acquisition of Ampere Computing
In a significant move poised to reshape the AI landscape, SoftBank Group announced on Wednesday that it will acquire Ampere Computing, a designer of chips rooted in sustainable AI technology. This all-cash deal, valued at $6.5 billion, underscores SoftBank’s commitment to boosting its investments in AI infrastructure.
Ampere’s New Chapter Under SoftBank
Upon completion of the deal, expected in the latter half of 2025, Ampere will operate as a wholly-owned subsidiary of SoftBank. The Santa Clara, California-based firm is primarily backed by Carlyle and Oracle, who will sell their stakes—59.65% and 32.27%, respectively. With a solid team of around 1,000 semiconductor engineers, Ampere stands equipped to innovate in the rapidly evolving chip market.
Interestingly, this acquisition marks a shift from SoftBank’s previous consideration of a minority stake in Ampere back in 2021. At that time, the startup was valued at $8 billion, highlighting its growth and potential.
A Strategic Partnership in AI
SoftBank, notably the largest shareholder of Arm Holdings, sees a natural synergy between its operations and Ampere’s offerings. Ampere has successfully developed server chips based on the ARM compute platform, making it an ideal partner for SoftBank. The latter’s acquisition of Arm in 2016 for $32 billion has already positioned it firmly in the chip industry, and Ampere’s client list, which includes tech giants like Google Cloud, Microsoft Azure, and Oracle Cloud, demonstrates its strong market presence.
This acquisition isn’t just about scale; it’s about enhancing SoftBank’s capabilities in AI and compute, further accelerating its growth initiatives. The recent announcement follows a series of strategic moves by the Japanese tech titan, including a collaboration with OpenAI to develop an advanced AI known as "Cristal intelligence." Furthermore, SoftBank is actively investing in AI infrastructure projects like Stargate, which focuses on building data centers for OpenAI across the U.S.
Leadership Insights
Masayoshi Son, Chairman and CEO of SoftBank Group Corp., emphasized the significance of this acquisition. "The future of Artificial Super Intelligence requires breakthrough computing power," he stated, acknowledging Ampere’s expertise in semiconductors and high-performance computing as critical to SoftBank’s vision for AI innovation.
Renee James, the founder of Ampere and a former Intel executive, expressed enthusiasm about joining forces with SoftBank. "With a shared vision for advancing AI, we are excited to join SoftBank Group and partner with its portfolio of leading technology companies," she said. Her leadership has already seen Ampere transition from a focus on cloud-native computing to a broader scope that includes sustainable AI compute solutions.
What This Means for the Future of AI
The implications of this acquisition extend beyond just corporate strategy; they touch on the future of AI itself. As Ampere enhances its roadmap for high-performance Arm processors, it will undoubtedly contribute to the innovative ecosystem SoftBank aims to cultivate. This partnership can pave the way for breakthroughs in AI computing, making it an exciting time for tech enthusiasts and professionals alike.
In conclusion, SoftBank’s acquisition of Ampere Computing is a strategic and timely move that showcases the growing importance of AI and high-performance computing in today’s tech landscape. As these two powerhouses unite, the potential for groundbreaking advancements in AI is on the horizon.
The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.
