SoftBank has announced a $6.5 billion deal to acquire Silicon Valley chip start-up Ampere Computing, doubling down on its belief in the potential of technology originating from smartphones to dominate the world’s data centers. The acquisition reflects SoftBank’s confidence that Ampere’s chips can make a significant impact in the field of artificial intelligence, where Nvidia currently leads.
Ampere, founded eight years ago, specializes in selling chips for data centers based on technology from Arm Holdings, which SoftBank acquired in 2016. By acquiring Ampere, SoftBank aims to accelerate its vision of artificial superintelligence and increase its commitment to A.I. innovation in the United States.
The sale of Ampere comes amidst a flurry of deals and shifting alliances in the chip industry, driven by the increasing demand for chips used in A.I. applications. SoftBank’s Stargate initiative, alongside OpenAI and Oracle, aims to invest $500 billion in building U.S. data centers to support A.I. operations.
Nvidia, Intel, Advanced Micro Devices, and Arm are all key players in the chip industry, with each company vying for a larger share of the growing A.I. microprocessor market. Ampere’s recent announcement of the Aurora chip, tailored for A.I. inferencing applications, shows the company’s dedication to expanding its presence in the sector.
Overall, SoftBank’s acquisition of Ampere signals a strategic move to strengthen its position in the competitive chip market and solidify its commitment to advancing A.I. technology. With the continued growth of the A.I. industry, companies like SoftBank are positioning themselves to lead innovations in this rapidly evolving field.
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