SoftBank said it's acquiring chip designer Ampere Computing for $6.5 billion in cash. Ampere will operate as a subsidiary, keeping its name and headquarters in Santa Clara.
The Japanese investment holding company said that the purchase would help to enhance its capabilities in key artificial-intelligence areas and accelerate its growth initiatives.
SoftBank to acquire chip designer Ampere in $6.5 billion deal
The move is a bet that Ampere's chips can begin playing a significant role in data centers for creating artificial intelligence.
SoftBank Group Corp said on Wednesday it will acquire Ampere Computing, a leading independent silicon design company, in an all-cash transaction valued at $6.5 billion.
SoftBank is marching ahead on its ambitions to build out a major AI operation in its home market of Japan, on its own steam and in strategic partnership with others like OpenAI. On Friday, the tech company confirmed it would pay $676 million for factory previously used by Sharp to build LCD panels to convert it into an artificial intelligence data center.
SoftBank plans to transform a former Sharp LCD panel plant in Japan into a data center for operating artificial intelligence agents developed in collaboration with U.S.-based ChatGPT creator, OpenAI, according to a Nikkei report on Friday.
SoftBank Group CEO Masayoshi Son plans to borrow $16 billion to invest in AI, the company's executives told banks last week, The Information tech news website reported on Saturday, citing people familiar with the matter.
SoftBank's telco arm has stayed resilient through a challenging backdrop. But new cash-burning AI ventures add a lot of near-term risk. The premium multiple leaves far too little room for error.
SoftBank Group (SFTBY) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
SoftBank remains overvalued with excessive exposure to the AI sector, particularly through Arm and the Vision Funds, which continue to underperform with hits and misses offsetting. Q3 2024 earnings showed mixed results, with revenue slightly beating estimates at $11.87 billion but a net loss of $443 million, reflecting ongoing profitability challenges. AI investments pose significant risks, especially after DeepSeek's announcement, which could disrupt AI economics and pressure SFTBY's portfolio, particularly its investments in OpenAI and the Stargate project.
SoftBank Group Corp. (OTCPK:SFTBY) Q3 2025 Earnings Conference Call February 12, 2025 2:30 AM ET Company Participants Yoshimitsu Goto - Board Director & Chief Financial Officer Navneet Govil - Chief Financial Officer-SB Investment Advisers & SB Global Advisers Jason Child - Executive Vice President & Chief Financial Officer Conference Call Participants MJ - Bloomberg Minoru Morita - Toyo Keizai Fumika Sato - Nikkei Asia Operator Thank you very much for waiting everyone. Now we would like to start the SoftBank Group Corp. Earnings Results Announcement for the Nine-Month Period Ended December 31, 2024.