SoftBank to Acquire Semiconductor Designer Ampere for $6.5B

SoftBank to Acquire Ampere Computing for $6.5 Billion

SoftBank Group has announced its intention to acquire Ampere Computing, a chip design firm established by former Intel executive Renee James. This acquisition, valued at $6.5 billion in cash, represents a strategic expansion of SoftBank’s investments within the realm of AI infrastructure.

Operational Structure Post-Acquisition

Following the completion of the deal, anticipated in the latter half of 2025, Ampere will function as a fully-owned subsidiary of SoftBank. This integration is designed to leverage synergies between the two organizations.

Stakeholder Divestment

The current lead investors in Ampere, Carlyle and Oracle, will be divesting their respective holdings in the Santa Clara, California-based company. According to SoftBank’s official statement, Carlyle currently controls a 59.65% stake, while Oracle holds 32.27%.

The company currently employs a workforce of 1,000 semiconductor engineers.

Previous Investment Considerations

Reports from Bloomberg indicate that SoftBank previously explored the possibility of acquiring a minority stake in Ampere back in 2021, at which time the company was valued at $8 billion.

Strategic Alignment with Arm Holdings

Given that SoftBank is the majority shareholder of Arm Holdings, and Ampere develops server chips utilizing the ARM compute platform, a strong partnership is naturally established. SoftBank initially acquired the British chip designer Arm in 2016 for $32 billion, and it subsequently became a publicly traded entity in 2023.

Ampere’s client base includes major cloud providers such as Google Cloud, Microsoft Azure, and Oracle Cloud, alongside other prominent companies like Alibaba, Tencent, HPE, and Supermicro.

Boosting AI and Compute Capabilities

SoftBank asserts that the acquisition of Ampere will significantly enhance its capabilities in crucial areas like AI and compute, thereby accelerating its growth strategies. This move follows a series of recent investments by the Japanese technology conglomerate.

These include a partnership with OpenAI to create Advanced Enterprise AI, dubbed “Cristal intelligence,” investment in the Stargate AI infrastructure project for building data centers for OpenAI across the U.S., and the purchase of a former Sharp factory in Japan.

Masayoshi Son’s Vision

“The future of artificial super intelligence requires breakthrough computing power,” stated Masayoshi Son, Chairman and CEO of SoftBank Group Corp. He further emphasized that Ampere’s semiconductor expertise and high-performance computing capabilities will be instrumental in realizing this vision and reinforcing SoftBank’s dedication to AI innovation within the United States.

Ampere’s Founding and Evolution

Founded in 2017 by James, who previously held positions at Intel and Carlyle, and served on Oracle’s board, Ampere initially focused on cloud-native computing. The company has since broadened its focus to encompass sustainable AI compute solutions.

Renee James’ Perspective

“With a shared vision for advancing AI, we are excited to join SoftBank Group and partner with its portfolio of leading technology companies,” said James. “This is a fantastic outcome for our team, and we are excited to drive forward our AmpereOne roadmap for high-performance Arm processors and AI.”