Ampere, the semiconductor company founded by former Intel executive Renee James, is reportedly on the cusp of being acquired by SoftBank in a deal valued at around $6.5 billion, according to Bloomberg. This marks a significant price cut from the $8 billion valuation in 2021, when SoftBank was in talks to purchase a minority stake in the company.

Ampere's focus on designing ARM chips for data centers makes it a good fit for SoftBank, which is the majority owner of chip designer ARM Holdings. The potential acquisition highlights SoftBank's continued interest in the semiconductor space, particularly in areas related to data center technology.

Ampere was founded in 2017 by James, who left a 28-year career at Intel after being passed over for the CEO role. She had been working as a deal maker at private equity company Carlyle and was on the board of Oracle at the time. James discovered that chip maker Macom wanted to sell a piece of its chip business and pitched Carlyle and Oracle with an idea to buy it. Both agreed to help her fund the acquisition.

When James founded Ampere, she became one of only two women leading a semiconductor company, alongside AMD CEO Lisa Su. Her vision was to create data center chips using low-energy ARM designs, a novel concept at the time. Oracle became a large customer, as well as other big cloud providers, including Microsoft.

However, in October, Oracle disclosed in its annual report that it not only owned 29% of Ampere but also held options and convertible notes that would allow it to commandeer a controlling stake of the company. These agreements were made directly with Ampere, as well as with other unnamed Ampere investors.

The deal with SoftBank is not final, and sources told Bloomberg that the terms could change or the deal might not happen at all. The uncertainty surrounding Ampere's ownership has been ongoing since September, when rumors first emerged that the company was on the market for a buyer.

As a private company, the exact extent of James' ownership in Ampere remains unclear. However, her departure from the Oracle board in mid-November, as announced in the company's annual report, has sparked speculation about her future role in the semiconductor industry.

The potential acquisition of Ampere by SoftBank has significant implications for the chip industry, particularly in the data center space. As the demand for cloud computing and data storage continues to grow, companies like SoftBank are seeking to strengthen their positions in this market. The deal, if finalized, would mark a major shift in the semiconductor landscape and could have far-reaching consequences for the industry.

In the broader context, the story of Ampere and its potential sale to SoftBank highlights the ongoing consolidation trend in the technology sector. As companies seek to stay competitive and adapt to changing market demands, strategic acquisitions and partnerships are becoming increasingly important. The Ampere-SoftBank deal, if finalized, would be a significant example of this trend in action.