SoftBank’s Ampere Investment to Challenge Intel and AMD’s x86 Dominance

SoftBank’s $6.5 billion acquisition of Ampere Computing is a defining moment in the battle for the future of data centers, signaling a decisive push toward ARM-based computing in an industry long dominated by x86 processors. The Japanese conglomerate’s latest investment underscores its belief that technology originally developed for smartphones will now take center stage in powering artificial intelligence and cloud computing.

Founded in 2017 by Renée James, a former Intel executive, Ampere Computing set out to challenge Intel and AMD’s x86 hegemony in the data center. The company’s chips are built on ARM architecture, a Reduced Instruction Set Computing (RISC) design that prioritizes power efficiency and scalability over the more complex, power-hungry x86 architecture. SoftBank, which acquired British chip designer Arm Holdings in 2016 for $32 billion, has long been pushing for wider adoption of ARM-based processors beyond mobile phones.

Ampere’s processors, such as Altra and Altra Max, have found a foothold among cloud providers and enterprise customers looking for high core density and improved power efficiency. Google Cloud, Microsoft Azure, Oracle Cloud, Alibaba, Tencent, HPE, and Supermicro are among the companies that have integrated Ampere’s chips into their infrastructure.

Oracle, in particular, has been a key backer, not just as a customer but as a major investor in Ampere. Oracle disclosed that it held a 29% stake in Ampere, valuing its investments including equity and debt at $1.5 billion after accounting for losses. With this deal, Oracle and private equity firm Carlyle Group, another significant Ampere investor, have agreed to sell their stakes to SoftBank.