SoftBank acquires Ampere Computing for $6.5 billion to boost AI infrastructure
- SoftBank Group is acquiring Ampere Computing for $6.5 billion to enhance its AI infrastructure.
- Ampere Computing, known for its expertise in semiconductor and cloud-native solutions, will continue to operate from its Santa Clara headquarters.
- This acquisition aligns with SoftBank’s broader strategy to invest in AI innovation and address challenges in computing for advanced artificial intelligence.
In a significant move towards enhancing its artificial intelligence capabilities, SoftBank Group announced the acquisition of California-based Ampere Computing for $6.5 billion in an all-cash deal. This acquisition is set to expand SoftBank’s AI infrastructure as it aims to deepen its commitment in this innovative field. Ampere Computing, founded in Silicon Valley in 2018, focuses on cloud-native computing and has garnered a reputation for its expertise in semiconductor design and high-performance computing solutions. After the acquisition, Ampere will operate as a wholly owned subsidiary of SoftBank, retaining its name and headquarters in Santa Clara, California. This move is strategic for SoftBank, especially considering its previous partnership with OpenAI to develop advanced enterprise AI known as 'Cristal intelligence'. SoftBank has pledged to invest $3 billion annually for market deployments of OpenAI’s solutions across its owned companies. Additionally, this acquisition aligns with SoftBank's role as a lead equity investor in the Stargate Project, which plans to invest $500 billion over the next four years to advance AI infrastructure, with OpenAI collaborating closely on this initiative. The rationale behind this acquisition partly stems from the recognition that Ampere’s advanced engineering team comprises about 1,500 chip and microcode engineers critical for developing Arm server chips. This expertise is crucial for both SoftBank’s internal projects and the broader objectives of the Stargate Project aiming at creating robust AI processors for future applications. However, the deal has raised some questions regarding redundancy since SoftBank already owns Arm, which designs processors that could serve similar functions without the added cost of the acquisition. Nonetheless, a successful integration of Ampere's innovative approaches in custom Arm servers may enhance competition for major technology players. The anticipated benefits extend beyond just engineering prowess; they include the prospect of innovating in local AI processing as Ampere prepares to release its Aurora AmpereOne A3 processor next year. In conclusion, the acquisition is emblematic of the aggressive strategy pursued by SoftBank to secure a dominant position in the rapidly evolving field of artificial intelligence, aligning with its executive’s vision for the future of AI and semiconductor technology.