SoftBank acquires US chipmaker Ampere Computing for $6.5B
What's the story
SoftBank Group has completed the acquisition of US-based chip start-up, Ampere Computing LLC, for a whopping $6.5 billion. The deal comes as part of SoftBank's strategy to expand its footprint in the AI hardware space. Following the announcement, SoftBank shares saw a spike of up to 8% in Tokyo today.
Strategic acquisition
Ampere Computing's role in AI hardware
Founded by former Intel executive Renee James, Ampere Computing has been at the forefront of developing data center processors based on Arm Holdings Plc technology. The company has a strong client base and an experienced engineering team that caters to this lucrative segment of the semiconductor industry. SoftBank's acquisition further strengthens its position in the AI hardware market, complementing its existing investments in Arm and UK-based AI firm Graphcore.
Portfolio expansion
SoftBank's existing AI hardware investments
SoftBank is already a majority owner of Arm, a company whose technology is widely used in the electronics market and increasingly as the basis for server chips. The Tokyo-based company also owns UK-based Graphcore Ltd, which SoftBank founder Masayoshi Son has said will offer the technologies needed for artificial intelligence components. The acquisition of Ampere Computing further strengthens this portfolio.