SoftBank Group is acquiring US-based chip designer Ampere Computing LLC for US$6.5 billion in cash, expanding its AI semiconductor portfolio. SoftBank's acquisition of Santa Clara-based Ampere is expected to close in the second half of 2025, subject to regulatory approval, according to Bloomberg, Reuters, and The Wall Street Journal.
Oracle and private equity firm Carlyle Group, early investors in Ampere, will divest their stakes. Post-acquisition, Ampere will remain an independent subsidiary of SoftBank, keeping its name and headquarters.
SoftBank explored a minority stake in Ampere in 2021 when the company was valued at over US$8 billion. Founded by ex-Intel president Renée J. James, Ampere began as a cloud-native computing firm before expanding into AI-driven processors for cloud and data centers.
Unlike most semiconductor firms, Ampere develops proprietary CPU cores—a strategy typically used by Apple and Qualcomm. It designs high-performance data center chips, competing directly with SoftBank's Arm Holdings. While it initially relied on Arm's architecture, Ampere now works directly with cloud giants like Microsoft and Google on custom Arm-based CPUs.
Google once used Ampere chips but later pivoted to its in-house Arm-based "Axon" processor, stating it won't expand Ampere chip deployments.
Ampere Computing founder, chair, and CEO, Renée J. James. Credit: DIGITIMES
SoftBank secures new IC design strength
Ampere CEO James said the deal will fast-track the AmpereOne roadmap, advancing its high-performance Arm processors for AI computing. Ampere and Arm will now both be part of SoftBank's expanding AI chip portfolio.
With AI chip competition heating up, tech firms are developing alternatives to Ampere's processors. SoftBank's acquisition adds a top-tier semiconductor design team, reinforcing its AI data center strategy. Soaring AI infrastructure investment has spiked demand for custom chips—SoftBank sees Ampere as a way to address this market beyond Arm's reach.
Ampere is among the few firms to challenge x86's dominance in data centers with Arm-based processors—a strategy that has seen most rivals fail or get acquired. Its energy-efficient, high-performance chips are increasingly relevant as power consumption becomes a critical issue for large-scale data centers.
Arm is transitioning from an IP licensing model to offering more integrated computing solutions. Under SoftBank, Ampere gains greater resources and a broader customer base, improving its economic outlook as a chip designer.
SoftBank CEO Masayoshi Son said artificial general intelligence (AGI) will demand unprecedented computational power, and Ampere's expertise in high-performance computing aligns with this vision. The acquisition also deepens SoftBank's AI innovation focus in the US.
Article edited by Jack Wu
