SoftBank Expands AI Portfolio with $6.5B Ampere Computing Deal
▼ Summary
– SoftBank Group is acquiring Ampere Computing for $6.5 billion in an all-cash deal, expected to finalize in late 2025.
– Ampere, founded by former Intel executive Renee James, will become a wholly-owned subsidiary of SoftBank, enhancing its AI and compute capabilities.
– Carlyle and Oracle, major investors in Ampere, will sell their stakes, and Ampere’s clients include Google Cloud, Microsoft Azure, and other tech giants.
– This acquisition is part of SoftBank’s broader strategy to strengthen its AI infrastructure, including partnerships with OpenAI and investments in data centers.
– SoftBank’s CEO Masayoshi Son highlighted the importance of high-performance computing for AI innovation, with Ampere’s expertise seen as crucial for achieving this vision.
In a strategic move to expand its investment in AI infrastructure, SoftBank Group has announced the acquisition of Ampere Computing for $6.5 billion in an all-cash deal. Founded by former Intel executive Renee James, Ampere will operate as a wholly-owned subsidiary of SoftBank following the transaction, which is expected to finalize in the latter half of 2025.
This acquisition marks a significant milestone for SoftBank, which is already the largest shareholder of Arm Holdings. Ampere’s development of server chips based on the ARM compute platform positions it as an ideal partner for SoftBank’s AI and compute endeavors. The integration of Ampere is expected to enhance SoftBank’s capabilities in these critical areas and accelerate its growth initiatives.
Carlyle and Oracle, the primary investors in Ampere, will divest their stakes of 59.65% and 32.27%, respectively. Ampere, based in Santa Clara, California, employs approximately 1,000 semiconductor engineers and has cultivated a customer base that includes tech giants like Google Cloud, Microsoft Azure, Oracle Cloud, Alibaba, and Tencent, along with companies such as HPE and Supermicro.
This acquisition is the latest in a series of strategic investments by SoftBank aimed at bolstering its AI infrastructure. Recent initiatives include a partnership with OpenAI to develop Advanced Enterprise AI called “Cristal intelligence” and investments in the AI infrastructure project Stargate, which is building data centers for OpenAI across the U.S. Additionally, SoftBank has acquired an old Sharp factory in Japan to further strengthen its hardware manufacturing capabilities.
Masayoshi Son, chairman and CEO of SoftBank Group Corp., emphasized the importance of high-performance computing in achieving the future of artificial super intelligence. He stated, “Ampere’s expertise in semiconductors and high-performance computing will help accelerate this vision and deepen our commitment to AI innovation in the United States.”
Founded in 2017, Ampere initially focused on cloud-native computing but has since broadened its scope to include sustainable AI compute. Renee James, the founder 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. 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.”
As the AI landscape continues to evolve, the acquisition of Ampere by SoftBank underscores the growing importance of semiconductor innovation in supporting advanced AI applications. The collaboration between these two companies is poised to make significant strides in the development of high-performance computing solutions, paving the way for future advancements in artificial intelligence.
Source: TechCrunch
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