Arm Explores Potential Acquisition of Ampere Computing to Bolster Data Center Strategy
The SoftBank-owned chip designer is considering a deal to expand beyond licensing and strengthen its position in the competitive server market.
- Arm is reportedly in early discussions to acquire Ampere Computing, a chipmaker specializing in Arm-based processors for data centers.
- Ampere, backed by Oracle with a 29% stake, has gained traction with energy-efficient CPUs optimized for cloud-native and AI workloads.
- The acquisition could support Arm’s shift from being a chip design licensor to a more integrated player in the semiconductor market.
- Regulatory scrutiny and potential conflicts of interest with other Arm ecosystem partners are key challenges to the deal’s feasibility.
- Ampere has faced growing competition in the AI chip sector and is exploring strategic options, including a sale, as IPO plans remain uncertain.