SoftBank Group has announced a significant acquisition, agreeing to purchase chip design firm Ampere Computing for $6.2 billion in cash. This strategic move allows Ampere to maintain its identity as a wholly owned subsidiary under the SoftBank umbrella.

Ampere Computing: Overview

Founded in 2017 by former Intel President, Renee James, Ampere Computing is headquartered in Silicon Valley. The company specializes in creating high-performance AI chips developed on the Arm compute platform. Previously, Ampere secured $814 million in funding, primarily from prominent investors such as Oracle and Carlyle Group.

SoftBank’s History with the Arm Ecosystem

SoftBank is already familiar with the Arm technology landscape, having acquired Arm Holdings in 2016 for $32 billion. This acquisition proved fruitful, as Arm made its public debut in 2023, achieving an impressive market capitalization of around $124 billion.

Strategic Focus on AI Infrastructure

The acquisition of Ampere fits seamlessly into SoftBank’s overarching strategy to invest heavily in AI infrastructure. The company has recently highlighted this focus through several initiatives, including a notable partnership with OpenAI aimed at advancing enterprise AI solutions.

Additionally, SoftBank plays a leading role in The Stargate Project, an ambitious multilateral initiative dedicated to developing AI datacenters and infrastructure with a planned investment of $500 billion over the next four years. Notably, SoftBank’s founder and CEO, Masayoshi Son, will chair this project.

Reviving the Vision Fund

SoftBank’s Vision Fund, known for its aggressive investment strategy in startups during previous market peaks, has begun to ramp up its activity after a period of retrenchment. Recent data indicates that the fund has already participated in eight funding rounds this year.

• Led a $130 million Series C for Terabase Energy, a solar technology firm.
• Provided $120 million in late-stage financing to cybersecurity company Cybereason.
• Contributed to Metsera’s $215 million Series B and Eruditus Executive Education’s $150 million Series F.
• Made a strategic investment in cloud security company Wiz in November, which stands to yield profits should Google proceed with a planned $32 billion acquisition of the firm.