Oracle reveals 29% stake in Ampere with option to own

Oracle this week revealed a 29% stake in server CPU design startup Ampere and said it can exercise future investments options that would give it control of the chipmaker. In a regulatory filing, Oracle said in addition to equity in the startup, it invested $600M in the fiscal year ended May 31 in convertible debt issued by Ampere after $400M in such debt in fiscal 2023. The debt matures in June 2026 and if exercised with options through January 2027 to acquire additional equity, Oracle would “obtain control of Ampere and consolidate its results with our results of operations.” In addition, Oracle announced that Ampere founder and CEO Renee James won’t run for reelection as a director at the company’s annual meeting on November 14. Vishal Sikka, founder and CEO of Vianai Systems, also is leaving the board, which reduces the size of the board to 13 members from 15. Bloomberg previously reported that Ampere has been working with a financial advisor over the past few months regarding a potential sale and that it was open to talks with a larger industry player on a potential transaction.