Why would Arm's owner want to buy a rival to AMD and Intel? I can think of one reason

(Image credit: Arm)

Softbank is apparently looking to buy Ampere Computing
Japanese tech giant already owns Graphcore and Arm
Experts say Softbank's ambition would be to rival global hyperscalers

SoftBank, the majority stakeholder in Arm, is reportedly in talks to acquire Ampere Computing (via Bnnbloomberg).

Ampere, known for its data center chips built on Arm architecture, has garnered attention for its advanced chips, including the 192-core Polaris and the upcoming 256-core Magnetrix.

The deal is currently uncertain but highlights SoftBank’s ambitions to challenge processor industry giants like AMD and Intel amid the ongoing boom in AI investment.

Ampere's strategic significance

Ampere Computing, backed by Oracle, is a pivotal player in the AI and data center chip market, and acquiring it would undoubtedly bolster Arm’s push beyond licensing chip designs to becoming a full-fledged chipmaker.

Ampere’s expertise could also enhance Arm’s push into the lucrative data center market, aligning with CEO Rene Haas’s vision of expanding the company’s presence in this sector.

Ampere processors are designed to handle demanding data center workloads, a critical capability as industries increasingly rely on AI-driven solutions. Combining Softbank Graphcore’s AI accelerators with Ampere’s processors could enable SoftBank to build competitive systems for that sector.

The potential acquisition comes with some caveats for either company. Ampere has been preparing for an IPO, indicating its interest in maintaining independence, while Softbank will have to convince Oracle and the Carlyle Group, both significant stakeholders in Ampere, to ratify the deal.

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Efosa has been writing about technology for over 7 years, initially driven by curiosity but now fueled by a strong passion for the field. He holds both a Master's and a PhD in sciences, which provided him with a solid foundation in analytical thinking. Efosa developed a keen interest in technology policy, specifically exploring the intersection of privacy, security, and politics. His research delves into how technological advancements influence regulatory frameworks and societal norms, particularly concerning data protection and cybersecurity. Upon joining TechRadar Pro, in addition to privacy and technology policy, he is also focused on B2B security products. Efosa can be contacted at this email: udinmwenefosa@gmail.com