SoftBank Makes a $6.5 Billion Bet on AI Infrastructure with Ampere Acquisition

This deal could give an edge to SoftBank as they can now access advanced chips used in data centers that are unavailable to other businesses.

Companies are increasingly investing in artificial intelligence, from the Stargate project to build AI infrastructure to now SoftBank’s acquisition.

SoftBank Groups has announced to buy Ampere Computing LLC, a semiconductor designer for the Japanese company, to grow its wings into artificial intelligence infrastructure.

In a joint statement released on Wednesday, SoftBank announced the all-cash transaction that founder Masayoshi Son revealed to be a game-changing technology investment.

SoftBank is buying Ampere for $6.5 billion. The deal’s initial investors include private equity firm Carlyle Group Inc. and Oracle Corp. They are part of the wave of chip companies looking to profit from an increase in artificial intelligence expenditures.

As part of the agreement, expected to be finalized in the second half of 2025, Oracle and Carlyle will sell their shares in Ampere. Ampere will continue to operate as a wholly owned subsidiary of SoftBank, retaining its name and Santa Clara headquarters.

Ampere manufactures processors for data centre equipment and develops the technology used by chip designer Arm Holdings Plc.

SoftBank owns most of Arm’s shares. The valuation of Arm Holding is over $8 billion in a planned minority investment by Japan’s SoftBank in 2021.

The former Intel Corp executive Renee James founded Ampere.

Renee James, Ampere’s chief executive officer (CEO), stated they are thrilled to join SoftBank Group and be one among its portfolio of leading technology companies.

She believed it was an excellent outcome for her team as they are eager to drive forward with Ampere’s roadmap for high-performance Arm processors and artificial intelligence.

She observed that the chip market has become more competitive as many large tech companies are racing to develop similar products as Ampere develops.

The deal will benefit Ampere as it helps the company be part of a larger company. It will enable it to access resources and potentially a wide range of clients that will help the economics of the chip design company.  

This $6.5 billion deal could give an edge to the Japanese company as buying Ampere will give SoftBank access to the type of advanced chips used in data centres unavailable to other businesses. So, it is a win-win situation.

It is doing that as demand for the chips is exploding amid runaway spending on AI infrastructure.

Since Arm works directly with Microsoft and Google to help them build their Arm-based CPUs, it ultimately became a competition for Ampere. Google initially adopted Ampere chips, but a year later, they worked with Arm to develop their own “Axon” CPU, so they stopped using Ampere.

Ampere is one of the companies that used Arm technology, which dominates the mobile phone industry, to create a space for itself in the data centre chip sector.

The deal with Ampere helps the Japanese company’s dream to come true. Plus, Arm is trying to move from providing chip technology to selling tech solutions that will give it more profits.

SoftBank Chairman and CEO Masayoshi Son stated that the future of artificial intelligence needs breakthrough processing power.

SoftBank’s ambition will be fulfilled with Ampere’s expertise in high-performance computers and semiconductors. It also deepens its commitment to developing artificial intelligence in the United States.

SoftBank’s Son established his fame and fortune on sure-winning bets like e-commerce and mobile internet, but his track record as an investor in artificial intelligence has been inconsistent.  

While SoftBank has invested billions in WeWork, a shared office provider, the Japanese company’s portfolio of technology start-ups has declined since 2022.