SoftBank Group Corp. (TSE: 9984) announced on March 20, 2025, that it will acquire U.S.-based semiconductor design company Ampere Computing in an all-cash deal valued at $6.5 billion. Once the transaction closes — expected in the second half of 2025 — Ampere will become an indirect, wholly owned subsidiary of SoftBank, operating under its existing name.

The deal, approved by SoftBank's board, is still subject to regulatory approvals, including U.S. antitrust and CFIUS (Committee on Foreign Investment in the United States) clearance. SoftBank stated that this acquisition aligns with its broader strategy to expand its AI and computing infrastructure capabilities.

Ampere's Rise and Challenges

Founded in 2017 by former Intel President Renee James, Ampere quickly made a name for itself by developing high-performance, energy-efficient processors tailored for cloud computing and AI workloads. The company's chips — including the 128-core Ampere Altra (2020), 192-core AmpereOne (2023), and a newly launched 256-core version in 2024 — are used by major cloud providers like Oracle, Google, and Microsoft.

James, a veteran of Intel with 28 years at the company, launched Ampere with backing from private equity firm Carlyle and tech giant Oracle. Oracle has been a key investor, holding a 29% stake in the company, along with Carlyle's 59.65% and Arm's 8.08%. Oracle also integrated Ampere's processors into its Oracle Cloud Infrastructure (OCI).

However, despite its technological achievements, Ampere has faced financial struggles. After peaking at an $8 billion valuation, the company's revenue steadily declined, falling from $152 million in 2022 to just $16 million in 2024, alongside mounting losses of $5.81 billion. A planned IPO was quietly shelved, leading to strategic reevaluation — and ultimately, the decision to sell.

SoftBank's Strategic Play

SoftBank sees Ampere as a critical piece in its AI ecosystem. By integrating Ampere with its subsidiary Arm — the world's leading semiconductor IP designer — SoftBank aims to combine Ampere's expertise in cloud and AI processing with Arm's chip design leadership. The company believes this will accelerate innovation in AI computing while enhancing Ampere's product roadmap, including the planned 512-core AmpereOne Aurora CPU.

Masayoshi Son, SoftBank's Chairman and CEO, emphasized the acquisition's importance:

"The future of Artificial Super Intelligence requires breakthrough computing power. 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."

Renee James, CEO of Ampere, echoed the sentiment:

"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."

By securing Ampere's cloud and AI processor expertise, SoftBank is betting on the growing demand for energy-efficient data centers — positioning itself to compete with x86 giants AMD and Intel in the evolving semiconductor landscape.