SoftBank Group’s $6.5bn acquisition of Ampere Computing signals major AI expansion

SoftBank Group Corp. has announced a definitive agreement to acquire Ampere Computing, a U.S.-based semiconductor company specializing in high-performance, energy-efficient AI processors, in an all-cash transaction valued at $6.5 billion. The deal aligns with SoftBank Group’s expanding artificial intelligence (AI) strategy, further strengthening its position in AI-driven computing. Once finalized, Ampere will operate as a wholly owned subsidiary while retaining its brand and leadership structure.

The acquisition follows a series of strategic moves by SoftBank Group to bolster its AI infrastructure. Ampere’s existing shareholders, including Carlyle and Oracle Corp., will divest their positions in the company. The transaction is expected to close in the latter half of 2025, pending regulatory approvals, including antitrust clearance and a review by the Committee on Foreign Investment in the United States (CFIUS).

How Does Ampere Computing Fit Into SoftBank Group’s AI Vision?

Founded in 2018 by former Intel executive Renée J. James, Ampere Computing was established to challenge traditional chip manufacturers by developing cloud-native, high-performance processors optimized for AI workloads. Its flagship product line, including the AmpereOne processors, is designed to handle large-scale data processing with a focus on energy efficiency—an increasingly critical factor in AI infrastructure.

SoftBank Group’s investment in Ampere aligns with its broader AI ambitions, particularly its growing focus on AI-driven computing. The company has been aggressively expanding its AI portfolio, including investments in Cristal Intelligence and Stargate, a $15 billion AI data center project in collaboration with OpenAI and Oracle. By integrating Ampere’s cutting-edge semiconductor capabilities, SoftBank Group aims to enhance its AI infrastructure, creating synergies with its other technology investments.

Chairman and CEO Masayoshi Son has long championed AI as a transformative force in technology, positioning SoftBank Group as a leader in AI-driven innovation. In a statement, he emphasized that Ampere’s expertise in high-performance computing would accelerate SoftBank Group’s AI initiatives, particularly in the U.S. market.

What Does the Ampere Acquisition Mean for the Semiconductor Industry?

SoftBank Group’s acquisition of Ampere comes at a time when AI-driven computing is reshaping the semiconductor industry. The demand for specialized AI processors has surged, with companies such as NVIDIA and Intel dominating the space. Ampere’s expertise in developing energy-efficient, high-performance Arm-based chips presents a potential challenge to these established players.

Arm Holdings, in which SoftBank Group holds a majority stake, plays a critical role in this ecosystem. The integration of Ampere’s processor designs with Arm’s existing architecture could accelerate the development of next-generation AI computing chips. This acquisition also raises questions about how SoftBank Group plans to position Ampere in relation to Arm Holdings, particularly as both companies focus on AI and cloud computing markets.

With approximately 1,000 semiconductor engineers, Ampere brings a wealth of talent and technical expertise to SoftBank Group. The deal is expected to drive further advancements in AI hardware, particularly in optimizing power efficiency for cloud and data center applications. As AI-driven workloads continue to expand, the competition for dominance in semiconductor technology will intensify, making this acquisition a strategic move for SoftBank Group’s long-term growth.

How Will SoftBank Group Finance the Ampere Acquisition?

SoftBank Group has confirmed that the $6.5 billion acquisition will be financed through a combination of cash reserves and borrowings, with Mizuho Bank Ltd. among the key financial backers. The company has also secured a fairness opinion from Raine Securities LLC, affirming that the purchase price aligns with Ampere’s market valuation.

Despite Ampere’s recent financial struggles—including a decline in revenue from $151.8 million in 2022 to just $16.5 million in 2024—SoftBank Group’s decision to move forward with the acquisition suggests confidence in Ampere’s long-term potential. The focus appears to be on Ampere’s technological capabilities rather than its short-term financial performance.

What Is the Market Reaction to SoftBank Group’s AI Expansion?

SoftBank Group’s stock (TSE: 9984) is currently trading at ¥7,979.00, with analysts maintaining a ‘Buy’ rating on the stock. The company’s AI-focused investment strategy has led to a 12-month price target of ¥11,926.93, reflecting a 49.48% potential upside. Price targets range from ¥9,000.00 to ¥16,300.00, indicating investor confidence in SoftBank’s long-term AI initiatives.

However, SoftBank Group recently reported a quarterly loss of ¥369.2 billion ($2.4 billion), primarily due to declining valuations of investments such as Coupang and Didi Global. Despite these short-term losses, SoftBank Group remains committed to large-scale AI investments, including a $40 billion funding proposal for OpenAI and the aforementioned $15 billion Stargate project.

Given the positive analyst sentiment and SoftBank Group’s aggressive expansion in AI infrastructure, investors may consider a ‘Buy’ position while monitoring financial risks associated with its investment-heavy approach.

What Challenges Could SoftBank Group Face in Closing the Deal?

While SoftBank Group has received board approval for the acquisition, the deal is subject to regulatory scrutiny. The U.S. government’s Committee on Foreign Investment in the United States (CFIUS) will review the transaction to assess potential national security concerns. Given recent tensions over semiconductor technology control, there is a possibility of delays or additional conditions being imposed before the deal is finalized.

Additionally, integrating Ampere within SoftBank Group’s existing AI ecosystem will present operational challenges. The company must ensure that Ampere’s technology complements its broader AI infrastructure strategy, particularly in relation to Arm Holdings.

Despite these hurdles, SoftBank Group’s acquisition of Ampere signals a long-term commitment to AI-driven computing. If the deal is successfully completed, it could reshape the semiconductor industry’s competitive landscape, reinforcing SoftBank Group’s position as a dominant player in AI hardware and cloud infrastructure.