Arm’s Japanese owner is rumored to be buying Arm’s only independent server chip vendor but I don’t understand the rationale behind it waynewilliams@onmail.com (Wayne Williams) | usagoldmines.com

• SoftBank is reportedly close to buying Ampere
• The $6.5 billion deal could shake up AI and data centers
• There are questions about how it affects Arm’s neutrality and SoftBank’s long-term strategy

SoftBank, the Japanese owner of Arm, is close to acquiring Ampere Computing, a company that develops data center chips based on Arm’s architecture.

In January 2025, BNN Bloomberg reported SoftBank was exploring a purchase of Ampere, which is backed by Oracle and private equity firm Carlyle Group, in a move widely seen as part of Softbank’s bid to challenge AMD and Intel’s dominance in the AI and data center chip market. However, as we previously reported, there were some hurdles to be overcome – Ampere was gearing up for an IPO, suggesting a desire to remain independent, while SoftBank would require approval from both Oracle and Carlyle Group before a deal could move forward.

However, a new Bloomberg report suggests that the deal is nearing completion and could be announced in the coming weeks. Sources familiar with the matter estimate its value to be around $6.5 billion, including debt. In 2021, SoftBank valued Ampere at over $8 billion during a proposed minority investment.

Strategic questions

Ampere develops high-performance processors for data centers, including the 192-core “Polaris” AmpereOne and upcoming 256-core “Magnetrix”, using Arm’s chip designs. Acquiring Ampere could help SoftBank, which previously bought UK-based AI chip designer Graphcore, expand its footprint in the competitive data center and AI markets.

That said, the move does raise some interesting strategic questions. Arm, long dominant in mobile chips, has been working to expand into server and AI processing.

Ampere is one of the few firms independently developing Arm-based server chips. If the deal moves forward, it could impact Arm’s role as a neutral supplier of intellectual property. Integrating Ampere into SoftBank’s ecosystem may also shift competitive dynamics in the industry.

Market conditions add a further level of complexity to the benefits buying Ampere will bring to SoftBank. The semiconductor sector faces rising competition and concerns over slowing AI-related investments.

As Bloomberg notes, “Chinese startup DeepSeek, which unveiled an inexpensively produced AI model last month, has raised the specter that technology providers won’t be generating as much revenue as predicted.”

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