Masayoshi Son, Founder, Chairman, and CEO of SoftBank Group

AsianFin -- SoftBank Group has finalized a $6.5 billion all-cash deal to acquire Ampere Computing LLC, a semiconductor designer specializing in data center processors.

The acquisition underscores SoftBank's new focus on artificial intelligence (AI) infrastructure and its efforts to capitalize on the booming demand for advanced computing solutions.

The agreement, confirmed in a joint statement on Wednesday, values Santa Clara-based Ampere at $6.5 billion. Early investors in Ampere, including Oracle Corp. and private equity firm Carlyle Group Inc., will sell their stakes as part of the transaction, which is expected to close in the second half of 2025. Ampere will operate as a wholly owned subsidiary of SoftBank, retaining its name and headquarters.

Ampere, founded by former Intel executive Renee James, designs processors for data center equipment using technology from Arm Holdings Plc, a chip designer majority-owned by SoftBank. The company has positioned itself as a key player in the data center chip market, emphasizing energy efficiency—a critical factor as the resource demands of large data centers continue to grow.

"With a shared vision of advancing AI, we are excited to join SoftBank Group and partner with its portfolio of leading technology companies," said James, Ampere's CEO, in a statement. "This is a fantastic outcome for our team, and we are excited to drive forward our AmpereOne roadmap for high-performance Arm processors and AI."

The acquisition comes amid a surge in demand for advanced chips, driven by the rapid expansion of AI infrastructure. By acquiring Ampere, SoftBank gains access to one of the few independent design teams specializing in data center chips, enhancing its ability to compete in the increasingly competitive semiconductor market.

Ampere is part of a wave of companies that have sought to leverage Arm's mobile-optimized technology to carve out a niche in the lucrative data center chip sector. While many of these efforts have faltered or been absorbed by larger firms, Ampere's acquisition by SoftBank keeps this strategy alive. The company has emphasized the power efficiency of its chips, a significant advantage as data centers face growing challenges related to energy consumption and operational costs.

For SoftBank, the deal represents an opportunity to strengthen its position in the AI and semiconductor markets. The investment firm has been actively seeking ways to capture a larger share of the AI infrastructure spending boom, and Ampere's expertise in high-performance computing aligns with this goal.

"The future of artificial superintelligence (ASI) demands unprecedented computing power," said SoftBank Chairman and CEO Masayoshi Son in a statement. "Ampere's expertise in semiconductors and high-performance computing will help accelerate this vision and deepen our commitment to AI innovation in the U.S."

ASI is a hypothetical software-based AI system with intellect beyond human intelligence.

The acquisition also aligns with Arm's broader strategy to transition from providing foundational technology to offering more comprehensive solutions that command higher prices. By integrating Ampere into its portfolio, SoftBank aims to leverage the company's resources and customer base to enhance the economics of chip design and development.

Son once lamented missing out on a $200 billion stock appreciation opportunity with Nvidia. In 2017, during a low point in Nvidia's stock price, SoftBank acquired nearly 5% of the company's stake for just $700 million, becoming its largest shareholder.

However, just two years later, SoftBank sold off its entire stake for $3.3 billion—a decision that proved costly as it occurred just before the AI boom sent Nvidia's valuation soaring to $3 trillion.

"You may not know this, but Masayoshi Son was once Nvidia's largest shareholder," Nvidia CEO Jensen Huang said during a recent event. "He is a one-of-a-kind entrepreneur and innovator with an extraordinary ability to identify the winners of each era and collaborate with them. He brought Bill Gates and Jerry Yang to the Japanese market, helped Alibaba introduce cloud computing to China, and brought Steve Jobs and the iPhone to Japan." (please check the quote)

At that moment, Son appeared visibly awkward, with his face showing a mix of regret and amusement. He responded by hugging Huang tightly, pretending to cry. Huang, laughing, hugged him back and quipped, "Let's cry together." Later, Huang couldn't resist teasing Son again, asking, "Can you imagine if you were still Nvidia's largest shareholder today?"

Huang also revealed that a decade ago, Son had offered to help privatize Nvidia by providing funding, but Huang declined the proposal. Reflecting on the decision, Huang joked, "Now I regret it."

Son's regret over the Nvidia sale is well-documented. At SoftBank's shareholder meeting in July 2023, he openly chastised himself, saying, "Every time I think about these missed opportunities, it's truly frustrating. I almost sold Nvidia's stock with tears in my eyes, missing out on such a massive gain."

Now, with the $6.5 billion acquisition of Ampere Computing, a high-performance AI chip designer, and investments in OpenAI and Arm, Masayoshi Son is positioning SoftBank for a strong comeback in the AI era.

Son has made bold predictions about the future of artificial superintelligence (ASI), stating that it will be 10,000 times smarter than the human brain and will emerge by 2035. However, building such a system will require at least 400GW of electricity, 200 million chips, and $9 trillion in funding—a figure he believes might even be an underestimate.