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Arm Holdings Eyes Bold Moves to Rival x86 with Ampere Acquisition Talks

AInvestFriday, Jan 10, 2025 5:45 pm ET
1min read

Arm Holdings has recently been in the news due to considerations of a potential acquisition of Ampere Computing LLC by SoftBank Group and its subsidiary Arm Holdings Plc. This potential deal underscores Arm's ambition to strengthen its influence in the high-performance computing sector, posing a challenge to the dominance of x86 architecture in the server market.

Earlier reports indicated that in 2021, SoftBank had valued Ampere at $8 billion during a minority stake investment proposal, though the current valuation being discussed remains undisclosed. Given the private nature of these discussions, the involved parties remain anonymous and caution that negotiations could still fall through. Ampere is exploring other strategic options, including potential acquisitions by different buyers.

Ampere Computing, established in 2018 by former Intel executive Renee James, focuses on developing Arm-based server processors. These processors aim to deliver efficient, low-power solutions for data centers. Ampere gained market recognition for its innovative products, such as the Ampere Altra Max, boasting impressive single- and multi-thread performance.

The acquisition could provide Ampere with significant financial backing and global reach through Arm's networks, accelerating product development and market presence. Despite the potential advantages, representatives from Arm and Ampere have declined to comment on the matter, while SoftBank and Oracle spokespeople haven't responded to requests for comment.

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