SoftBank Group Corp has announced a $6.5 billion all-cash acquisition of U.S.-based chip startup Ampere Computing, a company that has seen its revenue plummet from $151.82 million in 2022 to just $16.46 million in 2024.
Founded in 2018 by former Intel president Renee James, Ampere specializes in energy-efficient CPUs for cloud computing and AI workloads. Despite partnerships with major cloud players like Oracle, its financial trajectory raises questions about its long-term viability.
SoftBank is doubling down on AI and semiconductor technology, adding Ampere to its portfolio alongside Arm, in which it holds a majority stake. The acquisition aligns with SoftBank’s vision of advancing AI-driven computing, but the stark revenue decline casts doubt on whether Ampere can justify its lofty valuation.
With a shrinking revenue base, Ampere’s future under SoftBank remains uncertain, making this one of the conglomerate’s riskiest semiconductor bets yet.
Positive impacts
The acquisition of Ampere Computing by SoftBank presents several positive impacts, particularly in the fields of AI and semiconductor technology. Ampere’s expertise in designing high-performance, energy-efficient CPUs aligns well with SoftBank’s AI-driven vision, providing valuable synergy with Arm Holdings, in which SoftBank holds a majority stake. By bringing Ampere into its portfolio, SoftBank can strengthen its position in the rapidly evolving AI and cloud computing market, fostering innovation and enhancing competition in the semiconductor industry.
The deal also ensures financial stability for Ampere, allowing it to continue developing cutting-edge AI-focused processors without the constraints of its previous funding limitations. With SoftBank’s resources and strategic backing, Ampere can accelerate its roadmap for high-performance Arm-based processors, potentially expanding its market reach and adoption by major cloud service providers.
Additionally, SoftBank’s investment in Ampere signals confidence in the future of Arm-based computing, reinforcing the shift away from traditional x86 architectures and promoting greater efficiency and specialization in AI workloads. This move could drive broader industry adoption of custom Arm-based chips, benefiting cloud providers and enterprises looking for optimized AI and data center solutions.
Overall, the acquisition strengthens SoftBank’s influence in AI and semiconductor technology, positioning it as a key player in the next generation of computing infrastructure while ensuring Ampere’s continued innovation and market presence.
Baburajan Kizhakedath
