Japanese technology investment giant SoftBank Group (9984.T) is accelerating its expansion into chip technology with a $6.5 billion all-cash acquisition of U.S. chip startup Ampere Computing. The deal, announced on Wednesday, reflects SoftBank’s growing focus on artificial intelligence (AI) infrastructure, a sector that founder Masayoshi Son has identified as his next major investment in transformative technology.
The acquisition follows a series of multi-billion-dollar investments by SoftBank in AI-related ventures, including OpenAI, the Stargate project for AI data center infrastructure in the U.S., and Cristal, a joint initiative with OpenAI to develop AI services for Japanese corporate clients.
Ampere’s Role in AI and Cloud Computing
Ampere Computing, founded in 2018 by former Intel president Renee James, specializes in data center central processing unit (CPU) chips based on Arm Holdings’ architecture. These chips have been adopted by companies such as Oracle (ORCL.N) for their cloud computing infrastructure.
As part of the transaction, Ampere’s key investors, including Oracle and private equity firm Carlyle Group (CG.O), will exit their positions in the company, SoftBank confirmed.
Son emphasized that achieving “artificial super intelligence” would require cutting-edge computing power.
“Ampere’s expertise in semiconductors and high-performance computing will help accelerate this vision and deepens our commitment to AI innovation in the United States,” he said in a statement.
Ampere has developed its own custom computing core technology, a feat typically undertaken by much larger firms such as Apple (AAPL.O) and Qualcomm (QCOM.O).
Competition and Market Dynamics
Despite its early success, Ampere faced challenges as key customers began developing their own custom Arm-based CPUs. Google (GOOGL.O), which initially adopted Ampere’s chips, later collaborated with Arm to develop its own “Axon” CPU. A Google executive told Reuters that the company no longer plans to deploy additional Ampere chips.
Under SoftBank’s ownership, Ampere will join Arm Holdings in the conglomerate’s expanding portfolio of AI-focused semiconductor companies.
SoftBank’s AI Strategy and Investment Risks
Masayoshi Son has built his reputation on bold investments in emerging technologies, including e-commerce and mobile internet. However, his AI expansion comes amid soaring valuations in the sector, and his investment track record has been mixed.
While SoftBank’s backing of companies like OpenAI highlights its commitment to AI innovation, past investments such as WeWork—into which SoftBank funneled billions—ended in financial losses. Additionally, the Japanese firm’s Vision Fund, which holds stakes in numerous tech startups, has seen significant declines in valuation since 2022.
Despite these challenges, the acquisition of Ampere underscores SoftBank’s belief in the future of AI-driven computing and its determination to secure a foothold in the semiconductor industry.
