SoftBank Acquires Chip Start-up Ampere Computing for $6.5bn
Deal Marks Latest Move by Masayoshi Son to Expand Ambitions in Artificial Intelligence
SoftBank has agreed to acquire chip start-up Ampere Computing for $6.5bn, as the Japanese tech group’s founder Masayoshi Son expands his ambitions in artificial intelligence. The deal is the latest big move by Son, who has said SoftBank will build a vast infrastructure for AI that includes chip design, production, energy, robotics, and data centers.
Ampere’s Technology
Ampere makes processors for cloud computing and data center applications based on technology from UK chip designer Arm, which is majority-owned by SoftBank. The chip will tap surging investment in AI infrastructure by big tech groups and is expected to be a processor for servers in large data centers, built on a base that can be customized for clients.
Arm’s Evolution
Arm intends to launch its own chip this year after securing Facebook owner Meta as one of its first customers, in a radical change to its business model of merely licensing its blueprints to the likes of Apple and Nvidia. The chip will be a processor for servers in large data centers, built on a base that can be customized for clients. Ampere and its chip designers are seen in the industry as another building block for Arm’s evolution. SoftBank also bought UK-based, AI-focused chip start-up Graphcore last year.
SoftBank’s Vision
SoftBank said Ampere will "serve a critical role in the industry as hyperscalers and data center providers are increasingly looking to improve energy efficiency and reduce costs." Ampere was founded by former Intel president Renée James in 2018. "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," James said in a joint statement on Thursday.
Conclusion
The acquisition of Ampere is a significant step forward for SoftBank’s plans to build a vast infrastructure for AI, and marks another major investment in the company’s efforts to expand its reach in the technology sector.
Frequently Asked Questions
Q: What is SoftBank’s plan for Ampere?
A: SoftBank plans to operate Ampere as a wholly-owned subsidiary and will continue to develop its technology.
Q: Who are the major investors in Ampere?
A: Major investors Oracle and private equity group Carlyle will sell their stakes in Ampere as part of the deal.
Q: What is the expected closing date of the deal?
A: The deal is expected to close in the second half of this year.
