(Bloomberg) — SoftBank Group Corp . and its majority, Arm Holdings Plc, are exploring a deal for Ampere Computing LLC, according to people familiar with the matter.
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Ampere, the semiconductor designer backed by Oracle Corp., has attracted takeover interest from Arm as it explores its strategic options, said the people, who asked not to be identified because the discussions are private.
Talks could still fall apart, the people warned. It is also possible that Ampere could be bought by someone else.
Ampere, which designs semiconductors that use Arm's technology, was valued at $8 billion in a proposed minority investment from Japan's SoftBank in 2021, Bloomberg News reported at the time. It could not be learned what valuation SoftBank, Arm and Ampere are currently discussing.
Representatives for Arm and Ampere declined to comment. Spokesmen for SoftBank and Oracle did not immediately respond to requests for comment.
Ampere has been working with a financial advisor to help field a takeover interest, Bloomberg News reported in September. The Santa Clara, California company's interest in a deal with a larger industry player suggests it did not see an easy path to an initial public offering.
A deal for Ampere, whose early backers also include Carlyle Group Inc., would add to a wave of chip companies looking to take advantage of the AI spending boom. Oracle said last year that it owns 29% of the startup and may exercise investment options in the future that would give it control of the chipmaker.
While Ampere is likely to benefit from the ongoing AI frenzy, the market has grown more competitive, with several major tech companies rushing to develop the same types of chips as Ampere. While there is a lot of interest in managing key components as the data center industry recovers for the AI age, Ampere, like larger rivals Intel Corp. and Advanced Micro Devices Inc., must respond to a shift in spending away from central processor units. , or CPUs, towards Nvidia Corp.'s accelerator chips.
Ampere makes processors for data center machines using Arm's technology. Arm is increasingly moving from a licensor of basic standards and basic blueprints to a more complete chipmaker. The addition of Ampere's engineers, many who worked for Intel's previous industry-leading server chip unit, could add expertise and impetus to CEO Rene Haas' push into that market.