SoftBank Group has announced its acquisition of Ampere Computing, a leading chip designer, in an all-cash deal worth $6.5 billion. The strategic move aims to broaden SoftBank's investment in AI infrastructure, leveraging Ampere's expertise in semiconductors and high-performance computing.

Ampere, founded in 2017 by former Intel executive Renee James, will operate as a wholly-owned subsidiary of SoftBank after the deal, expected to close in the second half of 2025. The acquisition marks a significant expansion of SoftBank's capabilities in key areas like AI and compute, accelerating its growth initiatives.

The deal sees Carlyle and Oracle, Ampere's lead investors, selling their shares in the Santa Clara, California-based startup. According to SoftBank's statement, Carlyle holds a 59.65% stake, while Oracle holds 32.27%. Ampere employs 1,000 semiconductor engineers and has developed a server chip based on the ARM compute platform, positioning the two companies as strong partners.

SoftBank's acquisition of Ampere is not a surprise, given the company's previous interest in the startup. In 2021, SoftBank considered acquiring a minority stake in Ampere, which was then valued at $8 billion. The Japanese tech mogul's investment in Ampere is a strategic move to bolster its capabilities in AI infrastructure, following its partnership with OpenAI to develop Advanced Enterprise AI called "Cristal intelligence" and its investment in the AI infrastructure project Stargate.

Ampere's customers include prominent cloud players like Google Cloud, Microsoft Azure, Oracle Cloud, Alibaba, and Tencent, as well as companies like HPE and Supermicro. The acquisition is expected to deepen SoftBank's commitment to AI innovation in the United States, with Masayoshi Son, Chairman and CEO of SoftBank Group Corp., stating, "The future of Artificial Super Intelligence requires breakthrough computing power."

Ampere's expertise in semiconductors and high-performance computing will help accelerate SoftBank's vision for AI innovation. Renee James, founder and CEO of Ampere, expressed excitement about joining SoftBank Group and partnering with its portfolio of leading technology companies, driving forward Ampere's roadmap for high-performance Arm processors and AI.

The acquisition is the latest in a string of deals made by SoftBank over the past few months, demonstrating the company's commitment to investing in AI infrastructure and innovation. As the AI landscape continues to evolve, SoftBank's strategic move is expected to have significant implications for the industry, positioning the company as a key player in the development of AI infrastructure.

In conclusion, SoftBank's acquisition of Ampere Computing marks a significant milestone in the company's investment in AI infrastructure, bolstering its capabilities in compute and AI. As the industry continues to evolve, it will be interesting to see how SoftBank leverages Ampere's expertise to drive forward its vision for AI innovation.