SoftBank Makes a $6.5 Billion Bet on the Future of AI with Ampere Acquisition

Powering the AI Revolution

In a bold move signaling its commitment to the burgeoning field of artificial intelligence, SoftBank has acquired chip designer Ampere Computing for a cool $6.5 billion in cash. This significant investment underscores SoftBank's belief in Ampere's potential to drive the next generation of AI innovation.

Ampere, a Silicon Valley-based startup, will retain its name and headquarters in Santa Clara, California, operating as a subsidiary under the SoftBank umbrella.

"The future of Artificial Super Intelligence requires breakthrough computing power," stated Masayoshi Son, CEO of SoftBank, highlighting the strategic rationale behind the acquisition. "Ampere's expertise in semiconductors and high-performance computing will help accelerate this vision, and deepens our commitment to AI innovation in the United States."

A History of Big Bets on AI

This isn't SoftBank's first foray into the world of AI. The company has been steadily building its presence in the sector for several years, cultivating a close relationship with Nvidia CEO Jensen Huang and previously holding a substantial stake in the chip giant.

More recently, SoftBank acquired Arm, a European chipmaker, for $32 billion in 2016 and subsequently took it public in 2023. They've also invested heavily in OpenAI, contributing $500 million to the AI powerhouse in October.

SoftBank's commitment extends beyond direct investments in AI companies. The firm is a key player in the $500 billion Stargate joint venture with OpenAI, Oracle, and other investors, aiming to bolster AI infrastructure in the US over the next four years.

From Consumer Tech to AI's Transformative Power

While SoftBank has been known for consumer-focused investments, including some high-profile misses like WeWork, its focus has demonstrably shifted towards AI. Masayoshi Son sees AI as the defining technology of this century, a belief reflected in the company's current investment strategy.

The second Vision Fund, for example, is now backing exciting AI startups like generative AI video editing company OpusClip, showcasing SoftBank's dedication to fostering the next wave of AI-driven innovation.

The Ampere acquisition is expected to close in the second half of the year, solidifying SoftBank's position as a major force in the rapidly evolving landscape of artificial intelligence.