Japan’s SoftBank (SFTBY) is in advanced talks to acquire Oracle (ORCL)-backed chip designer Ampere Computing, making a bold bet on the surging demand for AI-enabled chips. According to Bloomberg, the deal is expected to value Ampere at around $6.5 billion, including debt, with a formal announcement potentially coming in the next few weeks. This represents a drop from Ampere’s $8 billion valuation in 2021 when SoftBank was in discussions to acquire a minority stake.
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Based in the U.S., Ampere is a semiconductor company that designs high-performance, energy-efficient chips for data centers.
Ampere to Power SoftBank’s AI Ambitions
If finalized, the deal would support SoftBank’s ambitions to further strengthen its push in the semiconductor industry as the demand for AI-driven computing surges. However, despite being in advanced stages, the deal could still encounter delays or collapse, according to sources familiar with the matter. Meanwhile, no official statements have been issued by Ampere, SoftBank, or Arm.
Additionally, Ampere leverages technology from Arm Holdings (ARM), a chip design firm majority-owned by SoftBank, making it a strong strategic fit for the company. Bloomberg reported last month that SoftBank and Arm had previously shown interest in acquiring Ampere.
Interestingly, the deal also underscores SoftBank founder Masayoshi Son’s determination to secure a dominant role in the AI industry. Last month, reports surfaced about SoftBank’s plans to invest up to $40 billion in Microsoft (MSFT)-backed OpenAI. SoftBank, known for its bold investments in the tech sector, is reportedly spearheading the latest funding round, which values the ChatGPT creator at an impressive $300 billion. This represents one of the highest valuations for a private company to date.
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