Arm’s Japanese owner is rumored to be buying Arm’s only independent server chip vendor but I don’t understand the rationale behind it
Posted by:
James Thompson
SoftBank, the Japanese conglomerate known for owning Arm, is on the brink of acquiring Ampere Computing, a company specializing in data center chips built on Arm’s architecture. The potential $6.5 billion deal is set to disrupt the AI and data center chip market, challenging the dominance of AMD and Intel. Amidst talks of acquisition hurdles due to Ampere’s IPO intentions and approvals from key stakeholders like Oracle and Carlyle Group, recent reports indicate the deal’s imminent conclusion. If finalized, the acquisition would bolster SoftBank’s presence in the competitive data center and AI sectors, alongside its previous investment in UK-based Graphcore. However, strategic concerns loom regarding Arm’s neutrality and market dynamics, considering its expansion into server and AI processing. With competition intensifying in the semiconductor industry and uncertainties over AI investments, the move signals a shift in technology landscape competitiveness.
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