Ampere, a semiconductor company created by former Intel executive Renee James, is reportedly nearing a $6.5 billion sale to SoftBank, highlighting a significant valuation drop from the $8 billion that was discussed during prior investment talks back in 2021. The impending deal underscores the constant flux regarding the company’s ownership, as it seeks to solidify its future in the evolving tech landscape.
Ampere specializes in the design of ARM chips tailored for data centers — a strategic area for SoftBank, given its major stake in the well-known chip design firm, ARM Holdings. Since its inception in 2017, when James left Intel after nearly three decades, Ampere has carved out a critical niche providing low-energy solutions for data centers. This concept was revolutionary at the time, challenging conventional chip manufacturing by leveraging energy-efficient ARM designs.
Back in 2017, James conceptualized Ampere after recognizing a lucrative opportunity when chipmaker Macom was willing to divest part of its business. With backing from private equity giant Carlyle and financial giant Oracle — where she served on the board — she successfully secured funding. Now, James stands as one of the few female leaders in the semiconductor sector, alongside AMD‘s CEO, Lisa Su.
The trajectory of Ampere has attracted significant attention from major companies, predominantly its connection with Oracle, which has become one of its largest customers. The tech giant recently revealed in its annual report that it owns 29% of Ampere, along with options and convertible notes that might grant it controlling stake in the company. These developments could have deep implications for Ampere’s operating strategy and its future direction.
If Oracle exercises its rights, it would enable the consolidation of Ampere’s operations with Oracle’s own, potentially influencing the broader semiconductor market dynamics and cloud computing sector. However, this aspect has led to a degree of uncertainty about Ampere’s independence and its strategic choices moving forward.
Renee James’s departure from Oracle’s board at the end of her term represents another facet of this ongoing saga. With her hands-on leadership style and vision, James has played a vital role in driving Ampere’s growth, making the future of the company particularly intriguing as it flirts with new ownership.
Despite the impending sale to SoftBank, titled negotiations have not been finalized, leaving room for the deal arrangements to evolve or even collapse. Sources indicate that the deal may still hang in balancing negotiations, showcasing the complex dance of ownership within the tech industry where valuations and control stakes are in constant flux.
Ampere’s journey has been emblematic of the semiconductor industry’s own evolution, characterized by shifting alliances, aggressive mergers, and competitive exploration of new technologies. As the company positions itself to potentially change hands, it raises questions about the indelible impact of such transitions on the competitive landscape of data centers and energy-efficient computing.
The confluence of high-stakes acquisitions and the rapidly changing technology sector presents a compelling narrative. With SoftBank stepping closer to acquiring Ampere, the implications could echo through the enterprise as well as consumer tech spaces, urging industry watchers to remain alert as events unfold.