Acquisition in the AI Chip Manufacturing Sector

In a move that further underscores the intense competition in the AI chip manufacturing industry, SoftBank has announced its acquisition of Ampere Computing, a company founded by former Intel president Renee James. The acquisition is valued at $6.5 billion in cash, highlighting the significance of Ampere’s expertise in the field.

Background on Ampere Computing

Ampere, established in 2018, initially focused on cloud-native computing. However, the company has since shifted its attention to "sustainable AI compute," as outlined in a press release. This development is unsurprising, given the growing importance of AI technologies in the tech industry.

Implications for SoftBank and Arm

The acquisition is expected to enhance Arm’s research and development capabilities, with SoftBank betting on Ampere’s expertise to drive growth. This move comes on the heels of reports that Arm, also owned by SoftBank, is developing its own in-house chip.

Statement from SoftBank

According to SoftBank, the acquisition will "help enhance SoftBank Group’s capabilities in key areas and accelerate its growth initiatives" as the company expands its AI infrastructure investments in ventures like Cristal intelligence and Stargate. Following the deal’s closure, which is anticipated to occur later this year pending regulatory approval, Ampere will operate as a wholly owned subsidiary under its current name.

Reaction from Ampere’s CEO

Renee James, CEO of Ampere, expressed enthusiasm about the acquisition, stating, "With a shared vision for advancing AI, we are excited to join SoftBank Group and partner with its portfolio of leading technology companies." James also highlighted the company’s plans to "drive forward our AmpereOne roadmap for high-performance Arm processors and AI," underscoring the potential for innovation and growth in the AI sector.