SoftBank and Arm Consider Acquisition of Ampere Computing, Signaling AI Chip Market Consolidation

Report: SoftBank and Arm could acquire server chip provider Ampere - SiliconANGLE

Report: SoftBank and Arm could acquire server chip provider Ampere SoftBank Group Corp. and Arm Holdings plc may acquire chipmaker Ampere Computing LLC, Reuters reported on Wednesday. It's unclear what price the company might fetch. Two years ago, SoftBank reportedly considered buying a stake in Ampere at a $8 billion valuation. It earlier expressed interest in acquiring the chipmaker outright. SoftBank became a major chip industry player in 2016 when it paid $32 billion to buy Arm. It took the chip designer public in 2023 but retains a majority stake. UK-based Arm sells popular processor designs that underpin most handsets, connected devices and a growing number of data center systems. Ampere develops a line of server processors based on Arm's instruction set architecture. Its newest chip, the AmpereOne M, started shipping last month. The processor features up to 192 cores and higher memory bandwidth than its predecessors, which enables applications to move data to and from RAM faster. Last July, Ampere previewed an upcoming processor called Aurora. It features up to 512 cores, or more than twice as many AmpereOne M, and includes a dedicated artificial intelligence module. It will also ship with HBM memory, a type of high-speed RAM that is widely used in AI chips. Rumors that Ampere is exploring a sale first emerged in September. At the time, Bloomberg reported that the company had hired a financial advisor to help it weigh its options. Today's report cautioned that the acquisition talks with SoftBank and Arm may not lead to a deal. Additionally, it's possible Ampere could accept a takeover offer from a different bidder. When rumors of the potential sale emerged in September, Bloomberg's sources said that the chipmaker could also opt to remain independent. The report that SoftBank may buy the company comes less than a year after it acquired another chip startup. In July, the company inked a deal to purchase Graphcore Ltd., a UK-based developer of AI processors. The chipmaker raised more than $760 million in funding prior to the acquisition. Graphcore offers an AI processor called the Bow IP that is based on wafer-on-wafer technology. It comprises two vertically-stacked layers: one that contains logic circuits and another equipped with capacitors, components designed to hold an electric charge. The capacitors deliver this electricity to the logic circuits in order to boost their performance. If an acquisition materializes, SoftBank might encourage Ampere to launch a go-to-market partnership with Graphcore. AI servers include not only machine learning accelerators but also a central processing unit that coordinates those accelerators. SoftBank could enter the market with a server that combines Graphcore's Bow IPUs and Ampere CPUs. At one point, the conglomerate considered partnering with Intel Corp. to take on Nvidia Corp. in the AI server market. SoftBank reportedly also hopes to provide software for those servers and play a role in supplying the power they use to run AI models.

SoftBank's Arm considers buying Oracle-backed Ampere Computing- Bloomberg By Investing.com

Investing.com-- SoftBank and its British chip designing unit Arm are considering a potential takeover of Oracle-backed semiconductor firm Ampere Computing, Bloomberg reported on Wednesday evening. Speculation over the deal comes as Ampere explores strategic options, including a potential sale, Bloomberg reported. Reports in September showed Ampere, which is privately owned, was considering a potential sale. Ampere develops Arm-based processors for applications across a wide variety of fields, most notably data centers, and was founded by ex Intel (NASDAQ:INTC) President Renee James in 2017. The company's data center chips have come into increased focus in recent years with the artificial intelligence boom, which saw heightened capital spending on data center infrastructure to power AI programs. Ampere has a partnership with Oracle Corporation (NYSE:ORCL). The cloud firm holds a nearly 30% stake in Ampere, and also has an option to buy it. Beyond Oracle, Ampere has partnerships with several major tech companies, including Microsoft Corporation (NASDAQ:MSFT), to develop chip technology geared towards heavy workloads, especially those from AI programs. Arm Holdings (NASDAQ:ARM) benefited from the AI boom, having marked a stellar IPO in late-2023 on AI fueled demand. The chip designer is a key part of the global semiconductor supply chain, given that its platform powers a variety of chips, especially in mobile devices. Arm's parent, SoftBank Group Corp. (TYO:9984), has also seen a surge in the value of its tech holdings on the AI boom. The Japanese tech conglomerate has vowed to aggressively step up its investment in the fast-growing AI industry.

SoftBank-Owned Arm Eyes Acquisition Of Oracle-Backed Chip Designer Ampere Computing Amid Nvidia's Dominance: Report - Intel (NASDAQ:INTC), ARM Holdings (NASDAQ:ARM)

Arm Holdings PLC - ADR ARM is exploring the potential acquisition of semiconductor designer Ampere Computing LLC, signaling further consolidation in the artificial intelligence chip sector. What Happened: Ampere, which designs data center processors using Arm's technology and is backed by Oracle Corp. ORCL, has been fielding takeover interest while working with financial advisers to explore strategic options, according to people familiar with the matter cited by Bloomberg on Wednesday. The company was previously valued at $8 billion in a proposed SoftBank Group Corp. SFTBY minority investment in 2021. The potential deal emerges as Ampere faces intensifying competition in the AI chip market. In May, the company partnered with Qualcomm Inc. QCOM to launch an AI-focused server combining Ampere's CPUs with Qualcomm's Cloud AI 100 Ultra chips for inference tasks. This collaboration aims to establish a stronger foothold in the data center market currently dominated by NVIDIA Corp. NVDA. Arm Holdings and Ampere Computing did not immediately respond to Benzinga's request for comment. See Also: Goldman Sachs Flags Market Correction Risk As Inflation, Trump Policies Stir Uncertainty Why It Matters: Oracle currently holds a 29% stake in Ampere with options to gain control. The startup, which had confidentially filed for an IPO in April 2022, is led by CEO Renee James, a former Intel Corp. executive. In May, the company announced plans for next-generation CPUs featuring 256 processing cores, manufactured using Taiwan Semiconductor Manufacturing Co.'s TSM 3-nanometer process. For Arm, acquiring Ampere could accelerate its evolution from a technology licensor to a more complete chipmaker, potentially leveraging Ampere's engineering expertise in the server market. The discussions, however, remain fluid and could fall through, according to the report. Read Next: Jim Cramer Warns On 'Quantum Stories' As Stocks Plunge: 'We Need You Out Before The Froth Goes Away' Image Via Shutterstock ARMARM Holdings PLC$144.500.08%Overview Rating:Speculative50%Technicals Analysis1000100Financials Analysis200100WatchlistOverviewINTCIntel Corp$19.84-0.85%NVDANVIDIA Corp$138.54-1.14%ORCLOracle Corp$162.600.35%QCOMQualcomm Inc$158.51-1.25%SFTBYSoftBank Group Corp$29.501.24%TSMTaiwan Semiconductor Manufacturing Co Ltd$206.28-2.43%Market News and Data brought to you by Benzinga APIs